a5 Using the base case, calculate the composite effects of a 5 percent increase in Sales, a 2 percent decrease in Gross Margin, and a percent increase is SG&A as percent of Sales. Colossal Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) Base Case Sales $2,110 $ Cost of goods sold 1,182 Selling, general, and 422 administrative expense Depreciation 121 Research and development 106 Total costs and expenses $1,831 $ Operating Income 279 Interest expense 34 Earnings before Income Taxes $245 $ Provision for Income Taxes 51 Net Income $194 $ Combined For the base case in this question, as a percentage of sales, COGS = 56 percent, SGA = 20 percent, R&D = 5.0 percent. Depreciation, Interest expense are fixed as stated. Tax Rate is 21 percent.