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

CANTON CORPORATION

Income Statement for 2013

Sales..................................................................... $272,800 (17,600 units at $15.50)

Cost of goods sold............................................... 123,200 (17,600 units at $7.00)

Gross profit.......................................................... 149,600

Selling and administrative expense...................... 13,640

Depreciation......................................................... 15,900

Operating profit................................................... 120,060

Taxes (30%)......................................................... 36,018

Aftertax income................................................... $ 84,042

Now assume that in 2015 the volume remains constant at 17,600 units, but the sales price decreases by 15 percent from its year 2014 level. Also, because of FIFO inventory policy, cost of goods sold reflects the inflationary conditions of the prior year and is $7.50 per unit. Further, assume selling and administrative expense will be 5 percent of sales and depreciation will be unchanged. The tax rate is 30 percent. Compute the after-tax income.