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For the base case in this section, as a percentage of sales, COGS ( =70 ) percent, SGA ( =15 ) percent, ( R &

For the base case in this section, as a percentage of sales, COGS \$ =70 \$ percent, SGA \$ =15 \$ percent, \$ R \\& D=2.4 \$ percent. Depreciation, Interest expense are fixed as stated. Tax Rate is 20 percent. 1.a Your answer is partially correct. Given the following case, calculate the independent effects of a 1 percent increase in Gross Margin, a 1 percent decrease in the

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