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Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following...

Campus Stop, Inc., is a student co-op. Campus Stop uses a perpetual inventory system. The following transactions (summarized) have been selected for analysis:

a. Sold merchandise for cash (cost of merchandise $151,550). $ 273,300
b. Received merchandise returned by customers as unsatisfactory (but in perfect condition) for cash refund (original cost of merchandise $790). 1,740
c. Sold merchandise (costing $8,550) to a customer on account with terms n/30. 19,000
d. Collected half of the balance owed by the customer in (c). 9,500
e. Granted a partial allowance relating to credit sales the customer in (c) had not yet paid. 1,780

Required:

  1. Compute Net Sales and Gross Profit for Campus Stop.
  2. Compute the gross profit percentage. (Round your answer to 2 decimal places.)
  3. Campus Stop is considering a contract to sell merchandise to a campus organization for $26,000. This merchandise will cost Campus Stop $15,500. Would this contract increase (or decrease) Campus Stop’s 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.)
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