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e . If Local Co . had interest expense of $ 7 9 0 , 0 0 0 , how would that affect each of
e If Local Co had interest expense of $ how would that affect each of its margins? Select the best choice below.
A Only the operating margin accounts for interest expense, so both the gross and profit margins will be unaffected.
B Only the net profit margin accounts for interest expense, so both the gross and operating margins will be unaffected.
C Only the gross margin accounts for interest expense, so both the net profit and operating margins will be unaffected.
D Both the gross and operating margins will be affected, but the net profit margin will be unaffected.
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