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

QUINN CORPORATION

Income Statement for $20$XX

Sales $$185,850(12,600$ units at $$14\mathrm{.}75)$

Cost of goods sold $126,000(12,600$ units at $$10\mathrm{.}00)$

Gross profit $59,850$

Selling and administrative expense $9,292$

Amortization $14,600$

Operating profit $35,958$

Taxes $(34\%)12,226$

Aftertax income $$23,732$

a$.$ Assume that the same $12,600$ unit volume is maintained in $20$XY$,$ but the sales price increases by $10$ percent. Because of FIFO inventory policy, old inventory will still be charged off at $$10\mathrm{.}00$ per unit. Also assume that selling and administrative expense will be $5$ percent of sales and amortization will be unchanged. The tax rate is $34$ percent. Compute aftertax income for $20$XY$.($Do not round the intermediate calculations. Round the final answer to nearest whole dollar.$)$

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? $($Round the aftertax income answer to nearest dollar. Round the final answer to $2$ decimal places.$)$

Gain in aftertax income

$\%$

c$.$ Now assume in $20$XZ the volume remains constant at $12,600$ units, but that the sales price decreases by $15$ percent from its $20$XY level. Also, because of FIFO inventory policy, cost of goods sold reflects the inflationary conditions of the prior year and is $$10\mathrm{.}50$ per unit. Further assume that selling and administrative expense will be $5$ percent of sales and amortization will be unchanged. The tax rate is $34$ percent. Compute aftertax income. $($Do not round intermediate calculations. Round final answer to nearest whole dollar.$)$

Aftertax income $