For the base case in this section, as a percentage of sales, COGS = 73 percent, SGA = 14 percent, R&D = 2.6 percent. Depreciation, Interest expense are fixed as stated. Tax Rate is 19 percent.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 1% Decrease in Tax Rate 5% Increase in Sales Sales $ 2,110 $ $ Cost of goods sold 1,540 Selling, general, and 295 administrative expense Depreciation 160 Research and development 55 Total costs and expenses $ 2,050 $ $ Operating Income 60 Interest expense 39 Earnings before Income Taxes $ 21 $ $ Provision for Income Taxes 4 Net Income $ 17 $ $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 Case 2% Increase in Gross Margin 2% Decrease in Tax Rate 5% Decrease in Sales Sales $ 2,110 $ $ Cost of goods sold 1,540 Selling, general, and 295 administrative expense Depreciation 160 Research and 55 development Total costs and $ 2,050 $ expenses Operating Income 60 Interest expense 39 Earnings before Income $ 21 $ Taxes Provision for Income 4 Taxes Net Income $ 17 $ $