AutoSave OFF v Document2 Home Insert Draw Design Layout References Mailings Review View RCM PERRLA Tell me Lato v 12 v Poste BIU ab x x A A Aa Av Dv EvEE 2 Comments Editing Share AaBhcDdFe Normal v AaBbCcDIFF Ne Spacing AaBbCcDc AaBbCcDdE AaBbt Heading Heading 2 Title Styles Pane Dictate Editor MathType For the base case in this section, as a percentage of sales, COGS-72 percent, SGA - 14 percent, R&D - 2.3 percent. Depreciation, Interest expense are fixed as stated. Tax Rate is 21 percent. Using the same case, calculate the independent effects of a 2 percent increase in Gross Margin, a 2 percent decrease in the Tax Rate, and a 5 percent decrease in Sales. Colossal Chemical Corporation Year Ended December 31, 20121 ($100,000 omitted) Sales 2% Increase 2% Decrease Base Case in Gross Margin in Tax Rate $2,110 Cost of goods sold 1,519 Selling, general, and 295 administrative expense Depreciation 160 Research and development 49 Total costs and expenses $2,023 Operating Income 87 Interest expense 39 Earnings before Income Taxes $48 Provision for Income Taxes 10 Net Income $ 38 L Page 1 of 1 140 words English (United States) Accessibility: Investigate 5% Decrease in Sales Focus 37 105%