has sales of $$$$10\mathrm{.}0$ million and cost of sales of $$$$6\mathrm{.}0$ million. Its$$ selling, general and administrative expenses are $ $500$ comma $000$ and its research and development is $$$$1\mathrm{.}0$ million. It has annual depreciation charges of $$$$1\mathrm{.}0$ million and a tax rate of $25\%.$

a$.$ What is Local$\text{'}$s gross$$ margin?

b$.$ What is Local$\text{'}$s operating$$ margin?

c$.$ What is Local$\text{'}$s net profit$$ margin?

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Part $1$

a$.$ What is Local$\text{'}$s gross$$ margin?