Question: Eor the base case in this section, as a percentage of sales, COGS=70 percent, SGA=14 percent, R&D=2.8 percent. Depreciation, nterest expense are fixed as stated.


Eor the base case in this section, as a percentage of sales, COGS=70 percent, SGA=14 percent, R&D=2.8 percent. Depreciation, nterest 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. 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
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