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.($000,000 omitted) (B:jz: 1% Increase in Gross Margin 1% Decrease in Tax Rate 5% Increase in Sales Sales 2,113 $ 3 Cost of goods sold 1.477 Selling, general, and 295 administrative expense Depreciation 160 Research and development 59 Total costs and expenses 3 $ $ 1,991 Operating Income 119 Interest expense 39 Earnings before Income Taxes ~ $ 80 $ 5 Provision for Income Taxes 17 Net Income $63 $ 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 50 development Total costs and $ 1,991 expenses Operating Income 119 Interest expense 39 Earnings before $ 80 Income Taxes Provision for Income 17 Taxes Net Income $ 63 $