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

CANTON CORPORATION

a$.$ Assume in $202$ the same $10,500-$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\mathrm{.}00$ 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 $202.$

Note: Do not round intermediate calculations. Round your answer to the nearest whole number.

Aftertax income

b$.$ In part $a,$ by what percent did aftertax income increase as a result of a $10$ percent increase in the sales price?

Note: Do not round intermediate calculations. Input your answer as a percent rounded to $2$ decimal places.

Aftertax income increased by

c$.$ Now assume that in $203$ the volume remains constant at $10,500$ units, but the sales price decreases by $15$ percent from its year

$202$ level. Also, because of FIFO inventory policy, cost of goods sold reflects the inflationary conditions of the prior year and is

$$7\mathrm{.}50$ 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.

Note: 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.