AutoSave OFF v QUESTION 2 acc 345 - Saved to my Mac PERRLA Tell me Home Insert Draw Design Layout References Mailings Review View RCM Calibri (Bo... v 12 v Poste BIU ab x x A A Aa Av Dv v AaBbCcDdEe Normal AaBbCcDIFF Ne Spacing AaBbCcDc AaBbCcDdE AaBbt Heading Heading 2 Title Styles Pane 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 Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) Sales Base Case Combined $2.110 S Cost of goods sold 1,245 Selling, general, and 4001 administrative expense Depreciation 121 Research and development 108 Total costs and expenses $1,875 S Operating Income 235 Interest expense 34 Earnings before Income Taxes $ 201 S Provision for Income Taxes 40 Net Incorne $ 161 S For the base case in this question, as a percentage of sales, COGS = 59 percent, SGA = 19 percent, R&D = 5.1 percent. Depreciation, Interest expense are fixed as stated. Tax Rate is 20 percent. Page 1 of 1 133 words English (United States) Accessibility: Investigate Comments Editing Share Dictate Editor MathType Focus 37 105%