Question

Required Information [The following information applies to the questions displayed below.) Hair World Inc. is a wholesaler of hair supplies. Hair World uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis: $63,200 a. Sold merchandise for cash (cost of merchandise $34,797). b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $450 ). c. Sold merchandise (costing $6,175 ) to a customer on account with terms n/60. d. Collected half of the balance owed by the customer in (c). e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 750 13,000 6,500 208 4. Hair World is considering a contract to sell merchandise to a hair salon chain for $18,000. This merchandise will cost Hair World $11.440. What would be the increase (or decrease) to Hair World's gross profit and gross profit percentage? (Round "Gross Profit Percentage" to 1 decimal place.) Gross Profit Gross Profit Percentage Gross Profit Percentage

Answer 1

Anoe Poge wo 0 tebual Csaler-cont Gvom Poif Co&s Sales Saler n cash 63200 349 8403 685 Sales in Gredib 13000 G19 (4300) 50(450) Sales oeln Sales allooane a08) (t208 Neb amount 754 40532 34190 Grons pootic 34a0 Govom prof percenag 34a0 46 1 X 1O0 522 Grors profi pecentge 46.14 in this Case The incoeased aro profit 18000 1440 6560 Neus Gro Pnohit - 34120t 6560 4l280

Gvom Proft 441280 NO he goo profit l increased by f560 proht XI00 GroM profi orakio Total sales 3420 656 0 XI00 75418000 41280 X i00 93242 O 442 IO0 4 4.27 GYo pioft percenage 44. profit pen centage The ckereased to 44T% aroas