Question

Campus Stop is considering a contract to sell merchandise to a campus organization for $27,000. This merchandise will cost Campus Stop $15,600. 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.)

Answer 1

Answer:

We cannot answer this question due to a lack of information:

Would this contract increase (or decrease) Campus Stop’s dollars of gross profit and its gross profit percentage?

all you need to do from here is to compare the figures i computed with the ones you supposed to be given.

Explanation:

Gross profit from contract in $ = Revenue from Contract - Costs

                                                   =  $27,000 -  $15,600

                                                   = $11,400

Gross Profit % = $11,400/$27,000

                 = 42.2%

We cannot answer this question due to a lack of information:

Would this contract increase (or decrease) Campus Stop’s dollars of gross profit and its gross profit percentage?

all you need to do from here is to compare the figures i computed with the ones you supposed to be given.