Question: Could help to solve this problem? Step by step instructions would be helpful. For the base case in this section, as a percentage of sales,

Could help to solve this problem? Step by step instructions would be helpful.

Could help to solve this problem? Step by stepCould help to solve this problem? Step by stepCould help to solve this problem? Step by step
For the base case in this section, as a percentage of sales, COGS = 70 percent, SGA = 14 percent, R&D = 2.8 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, 2021 ($000,000 omitted) Base Case 2% Increase in Gross Margin 2% Decrease in Tax Rate 5% Decrease in Sales Sales $ 2,110 $ Cost of goods sold 1,477 Selling, general, and administrative 295 expense Depreciation 160 Research and 59 development Total costs and $ 1,991 $ expenses Operating Income 119 Interest expense 39 Earnings before $80 Income Taxes Provision for Income 17 Taxes\f

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