Current Attempt in Progress For the base case in this section, as a percentage of sales, COGS = 71 percent, SGA = 16 percent, R&D = 2.4 percent. Depreciation, Interest expense are fixed as stated. Tax Rate is 20 percent. 1.a Given the following case, calculate the independent effects of a 1 percent increase in Gross Margin, a 1 percent decrease in the TaxRate, and a 5 percent increase in Sales. Colossal Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) Sales Cost of goods sold Selling, general, and administrative expense Depreciation Research and development Base Case 1% Increase in Gross Margin 1% Decrease in Tax Rate 5% Increase in Sales $ 2,110 $ 1,498 338 160 52 51 $ Total costs and expenses $2,047 $ $ Operating Income Interest expense 63 63 39 Earnings before Income Taxes $24 $ Provision for Income Taxes 5 Net Income $ 19 $ $ $