Given the following case, calculate the independent effects of a 1 percent increase in Gross Margin, a 1 percent decrease in the TaxRate, and a 5 percent increase in Sales. Colossal Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) 1.b Sales Base 1% Increase in Gross Margin 1% Decrease in Tax Rate 5% Increase in Sale Case $ $ 2,110 2110 $ 2110 2215.50 Cost of goods sold 1,456 1455.99 1456 Selling, general, and 295 295 295 administrative expense Depreciation 160 160 160 160 Research and development 55 55 55 55 $ Total costs and expenses $ $ 1966 $ 1.966 Operating Income 144 144 Interest expense 39 Earnings before Income Taxes $105 Provision for Income Taxes 22 Net Income $ 39 39 $ 105 $ $83 $ $ $ Using the same case, calculate the independent effects of a 2 percent increase in Gross Margin, a 2 percent decrease in the Tax Rate, and a 5 percent decrease in Sales. Colossal Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) 39 Base Case 2% Increase in Gross Margin 2% Decrease in Tax Rate 5% Decrease in Sales Sales $2.110 $ 2110 $ 2110 $ Cost of goods sold 1,456 1455.98 1456 Selling, general, and administrative 295 295 295 expense 160 160 160 160 Depreciation Research and 55 development Total costs and $ 1.966 $ expenses Operating Income 144 Interest expense Earnings before Income Taxes Provision for Income Taxes Net Income 39 39 $105 $ 22 22 55 39 55 $ 1966 $ 39 $ 105 $ $83 $ $ Save for Later Last saved 1 second ago. $ 55 39 Attempts: 0 of 2 used Submit Answer