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 $SG$&$A$ as percent of Sales.

Colossal Chernical Corporation

Year Ended December $31,2021$

$($$$000,000$ omitted$)$

For the base case in this question, as a percentage of sales, COGS$=59$ percent, SGA$=19$ percent, $R$&$D=5\mathrm{.}1$ percent. Depreciation,

Interest expense are fixed as stated. Tax Rate is $20$ percent.