The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting. Sales Cost...

 

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The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting. Sales Cost of goods sold CANTON CORPORATION Income Statement for 20X1 $ 220,500 112,500 $ 108,000 11,025 (15,000 units at $14.70) (15,000 units at $7.50) Gross profit Selling and administrative expense Depreciation Operating profit Taxes (30%) Aftertax income 11,000 $ 85,975 25,792 $ 60,182 a. Assume in 20X2 the same 15,000-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 $7.50 per unit. Also assume selling and administrative expense will be 5 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute aftertax income for 20X2. Note: Do not round intermediate calculations. Round your answer to the nearest whole number. Aftertax income _ The Canton Corporation shows the following income statement. The firm uses FIFO inventory accounting. Sales Cost of goods sold CANTON CORPORATION Income Statement for 20X1 $ 220,500 112,500 $ 108,000 11,025 (15,000 units at $14.70) (15,000 units at $7.50) Gross profit Selling and administrative expense Depreciation Operating profit Taxes (30%) Aftertax income 11,000 $ 85,975 25,792 $ 60,182 a. Assume in 20X2 the same 15,000-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 $7.50 per unit. Also assume selling and administrative expense will be 5 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute aftertax income for 20X2. Note: Do not round intermediate calculations. Round your answer to the nearest whole number. Aftertax income _