Prueba Corta cap 3 Saved Help Save & Exit Submit 3 The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting. CANTON CORPORATION Skipped Print Income Statement for 20X1 Sales Cost of goods sold Gross profit Selling and administrative expense Depreciation Operating profit Taxes (308) Aftertax income $292,250 (16,700 units at $17.50) 175,350 (16,700 units at $10.50) $116,900 17,535 17,500 $ 81,865 24,560 $ 57,306 a. Assume in 20X2 the same 16,700-unit volume is maintained but that the sales price increases by 10 percent. Because of FIFO inventory policy, old inventory will still be charged off at $10.50 per unit. Also assume selling and administrative expense will be 6 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute aftertax income for 20X2. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Aftertax income $ 76,536 h in nart a hy what nercent did aftertax income increase as a result of a 10 percent increase in the sales Skipped b. In part a, by what percent did aftertax income increase as a result of a 10 percent increase in the sales price? (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.) Gain in aftertax income Print 33.56 % c. Now assume that in 20X3 the volume remains constant at 16,700 units, but the sales price decreases by 1 percent from its year 20X2 level. Also, because of FIFO inventory policy, cost of goods sold reflects the inflationary conditions of the prior year and is $11.00 per unit. Further, assume selling and administrative expense will be 6 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute the aftertax income. (Round the sales price per unit to 2 decimal places but do not round any other intermediate calculations. Round your final answer to the nearest whole dollar amount.) Aftertax income