Question: For the base case in this section, as a percentage of sales, COGS = 69%, SGA = 13%, R&D = 2.2%. Depreciation and interest expenses

For the base case in this section, as a percentage of sales, COGS = 69%, SGA = 13%, R&D = 2.2%. Depreciation and interest expenses are fixed as stated. The tax rate is 18 percent.

Given the following case, calculate the independent effects of a 1 percent increase in gross margin, a 1 percent decrease in the tax rate, and a 5 percent increase in sales.

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