7

Local Co, has sales of $10.6 million and cost of sales of $5.6 million. Its selling. goneral and administrative expenses are $520,000 and its research and development is $1.4 milion. It has annu depreciation charges of $1.2 milion and a tax rate of 25%. a. What is Local's gross margin? b. What is Local's cperating margin? c. What is Local's net profit margin? a. What is Local's gross margin? Locals gross margin is 4. (Round to one decimal place)