Given the following case, late 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. of goods sold ng. general, and ministrative expense reciation earch and development tal costs and expenses ating Income rest expense sion for Income Taxes Base Case come $ 2,110 1,435 274 160 42 $ 1,911 199 39 ngs before Income Taxes $160 $ 30 1% Increase in Gross Margin $ $ Colossal Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) $130 S 2110 1428.25 160 42 $ $ $ $ 1% Decrease in Tax Rate 2110 1435 274 160 42 1911 199 39 $ $ 160 $ $ 5% Increase in Sales 2215.5 160
Given the following case, late 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. of goods sold ng. general, and ministrative expense reciation earch and development tal costs and expenses ating Income rest expense sion for Income Taxes Base Case come $ 2,110 1,435 274 160 42 $ 1,911 199 39 ngs before Income Taxes $160 $ 30 1% Increase in Gross Margin $ $ Colossal Chemical Corporation Year Ended December 31, 2021 ($000,000 omitted) $130 S 2110 1428.25 160 42 $ $ $ $ 1% Decrease in Tax Rate 2110 1435 274 160 42 1911 199 39 $ $ 160 $ $ 5% Increase in Sales 2215.5 160
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
H1.
Account
I would need to calculate with the following information provided. This is all that was provided to me.
COGS: 68% - SGA: 13% - R&D: 2% -
***Please do provide a step by step calculations and explanation***
Transcribed Image Text: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.
t of goods sold
ing, general, and
ninistrative expense
reciation
earch and development
tal costs and expenses
ating Income
rest expense
ision for Income Taxes
Base
Case
ncome
$
2,110
1,435
274
160
42
$
1,911
199
39
ings before Income Taxes $160 $
30
1% Increase in Gross Margin
$
69
Colossal Chemical Corporation
Year Ended December 31, 2021
($000,000 omitted)
$130 $
2110
1428.25
160
42
$
69
$
$
$
1% Decrease in Tax Rate
2110
1435
274
160
42
1911
199
39
$
$
160 $
$
5% Increase in Sales
2215.5
160
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