The Canton Corporation shows the following income statement. The firm uses FI FO inventory accounting. CANTON CORPORATION Income Statement for 2001 Sales *204,600 (18.600 unita @ 11.00 Cost of Goods Sold 139,500 (18,600 units @ $7.50) Gross Profit $65,100 Selling and Admin Expery 12,276 Deprecation 10.500 Co 1:42.324 Taxes (30%) After tax Income 1929,627 Operating Profit 12, 697 a Assume in 2DX 2 the same 18.600-Unit volume is maintained "but that the sales price increases by 10% Because of FIFO inventory policy, old inventory will still be charged off at 47.50 per unit. Also Assume Selling and Admin expenses will be 69 of Sales and deprecation will be unchanged. Tax rate is 307. Computer After tax income for 20x2 After tax Income- b. In part a. by what percent did after tax income increase as a result of a 10% increase in the sales price? Gain in After tax income c. now assume that in 20x3 the volume remains constant at 18,600 units, but the sales price decreased 157 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 *8.00 per unit further assume selling and Admin expense will be 6% of sales and deprecation will be unchanged. The tax rate is 30% Compute the Aftertax incone Aftertax Income