Current Attempt in Progress

Using the base case, calculate the composite effects of a $5$ percent increase in Sales, a $2$ percent decrease in Gross Margin, and a $5$ percent increase is $\backslash ($ S G $\backslash$& A $\backslash )$ as percent of Sales.

Colossal Chemical Corporation

Year Ended December $31,2021(\backslash (\backslash$$ $000,000\backslash )$ omitted$)$

Sales

Cost of goods sold

Selling, general, and administrative expense

Depreciation

Research and development

Total costs and expenses

Operating Income

Interest expense

Earnings before Income Taxes

Provision for Income Taxes

Net Income

$\backslash (\backslash$$ $2,110\backslash$$ $\backslash )$

$1,245$

$422$

$121$

$103$

$\backslash (\backslash$$ $1,891\backslash$$ $\backslash )$

$219$

$34$

$\backslash (\backslash$$ $185\backslash$$ $\backslash )$

$39$

$\backslash$$$146\backslash$$

For the base case in this question, as a percentage of sales, COGS $-59$ percent, SGA $-20$ percent, R$\backslash$&D $-4\mathrm{.}9$ percent. Depreciation, Interest expense are fixed as stated. Tax Rate is $21$ percent.