The Quinn Corporation shows the following income statement. The firm uses FIFO inventory accounting. QUINN CORPORATION Income Statement for 2exx $170,800 Sales (12,200 units at $14.00) Cost of goods sold 85,400 (12,200 units at $7.00) Gross profit Selling and administrative expense Amortization 85,400 8,540 11,000 Operating profit Taxes (34%) 65,860 22,392 Aftertax income $43, 468 a. Assume that the same 12,200 unit volume is maintained in 20XY, but the sales price increases by 10 percent. Because of FIFO inventory policy, old inventory will still be charged off at $700 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 20XY. (Do not round the intermediate calculations. Round the final answer to nearest whole dollar.) Aftertax income $ 27908 b. In parta, 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 24.64 9 c. Now assume in 20XZ the volume remains constant at 12.200 units, but that the sales price decreases by 15 percent from its 20XY level. Also, because of FIFO inventory policy, cost of goods sold reflects the inflationary conditions of the prior year and is 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 24.64 % c. Now assume in 20XZ the volume remains constant at 12,200 units, but that the sales price decreases by 15 percent from its 20XY level. Also, because of FIFO inventory policy, cost of goods sold reflects the inflationary conditions of the prior year and is $750 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 $ 18806