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

CANTON CORPORATION Income Statement for 20X1
Sales	$	307,100	(16,600 units at $18.50)
Cost of goods sold		199,200	(16,600 units at $12.00)
Gross profit	$	107,900
Selling and administrative expense		18,426
Depreciation		11,600
Operating profit	$	77,874
Taxes (30%)		23,362
Aftertax income	$	54,512

a. Assume in 20X2 the same 16,600-unit volumeis maintained but that the sales price increases by 10 percent.Because of FIFO inventory policy, old inventory will still becharged off at $12.00 per unit. Also assume selling andadministrative expense will be 6 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 percent didaftertax income increase as a result of a 10 percent increase inthe sales price? (Do not round intermediate calculations.Input your answer as a percent rounded to 2 decimal places.)______

c. Now assume that in 20X3 the volume remainsconstant at 16,600 units, but the sales price decreases by 15percent from its year 20X2 level. Also, because of FIFO inventorypolicy, cost of goods sold reflects the inflationary conditions ofthe prior year and is $12.50 per unit. Further, assume selling andadministrative expense will be 6 percent of sales and depreciationwill be unchanged. The tax rate is 30 percent. Compute the aftertaxincome. (Round the sales price per unit to 2 decimal placesbut do not round any other intermediate calculations. Round yourfinal answer to the nearest whole dollar amount.)________