Current Attempt in Progress 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. 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) Base Case 1% Increase in Gross Margin 19% Decrease in Tax Rate 5%% Increase in Sales ales 2,110 $ Cost of goods sold 1,477 Selling, general, and 295 administrative expense Depreciation 160 Research and development 59 Total costs and expenses 1,991 perating Income 119 Interest expense 39 K arnings before Income Taxes $ 80 $ ovision for Income Taxes 17 et Income $63 5 $ 2- /40 Question 1 of 2 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 2% Increase in Gross Margin 2% Decrease in Tax Rate 5% Decrease in Sales Case 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 110 Interest expense Earnings before $ 80 Income Taxes Provision for Income 17 Taxes Net Income $ 63 I $ Save for Later Attempts: 0 of 2 used Question Part Score Submit Answer -20