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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
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. 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
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