Handy Howard's Incorporated, is a student co$-$op$.$ Handy Howard uses a perpetual inventory system. The following

transactions $($summarized$)$ have been selected for analysis:

a$.$ Sold merchandise for cash $($cost of merchandise $$154,870).$

b$.$ Received merchandise returned by customers as unsatisfactory $($but in perfect condition$)$ for cash

refund $($original cost of merchandise $$608).$

$\backslash$table$[[$c$.$ Sold merchandise $($costing $$9,180$ to a customer on account with terms $\frac{n}{30}.,1,630],[$d$.$ Collected half of the balance owed by the customer in $(c).,20,400]]$

d$.$ Collected half of the balance owed by the customer in $($C$).10,200$

e$.$ Granted a partial allowance relating to credit sales the custom in $($C$)$ had not yet paid. $1,140$

f$.$ Anticipate further returns of merchandise $($costing $$204)$ after month$-$end from sales made during

the month.

CP$6-3($Algo$)$ Part $4$

Handy Howard is considering a contract to sell merchandise to a Handy Howard organization for $$15,400.$ This merchandise will

cost Handy Howard $$12,320.$ Would this contract increase $($or decrease$)$ Handy Howard dollars of gross profit and its gross profit

percentage? TIP: The impact on gross profit dollars may differ from the impact on gross profit percentage. $($Round "Gross Profit

Percentage" to $1$ decimal place.$)$