The Canton Corporation shows the following income statement. Thefirm uses FIFO inventory accounting.

CANTON CORPORATION Income Statement for 20X1
Sales	$	239,400	(12,600 units at $19.00)
Cost of goodssold		126,000	(12,600 units at$10.00)
Grossprofit	$	113,400
Selling andadministrative expense		11,970
Depreciation		14,600
Operatingprofit	$	86,830
Taxes (30%)		26,049
Aftertaxincome	$	60,781

a. Assume in 20X2 the same 12,600-unit volume ismaintained, but that the sales price increases by 10 percent.Because of FIFO inventory policy, old inventory will still becharged off at $10.00 per unit. Also assume selling andadministrative expense will be 5 percent of sales and depreciationwill be unchanged. The tax rate is 30 percent. Compute aftertaxincome for 20X2. (Do not round intermediate calculations.Round your answer to the nearest whole number.)

b. In part a, by what percentdid aftertax income increase as a result of a 10 percent increasein the sales price? (Do not round intermediatecalculations. Input your answer as a percent rounded to 2 decimalplaces.)

c.Now assume that in 20X3 the volume remains constant at 12,600units, but the sales price decreases by 15 percent from its year20X2 level. Also, because of FIFO inventory policy, cost of goodssold reflects the inflationary conditions of the prior year and is$10.50 per unit. Further, assume selling and administrative expensewill be 5 percent of sales and depreciation will be unchanged. Thetax rate is 30 percent. Compute the aftertax income. (Roundthe sales price per unit to 2 decimal places but do not round anyother intermediate calculations. Round your final answer to thenearest whole dollar amount.)