23. Local Co. has sales of $12 million and cost of sales of $5 million. Its selling, general, and administrative expenses are $850,000 and its research and development is $1.5 million. It has annual depreciation charges of $1.2 million and a tax rate of 40%.

a. What is Local's gross margin?

b. What is Local's operating margin?

c. What is Local's net profit margin?