Homework: Chapter 2 Homework P 2-23

Local Co. has sales of $10.2 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $470,000 and its research and development is $1.4 million. It has annual depreciation charges of $1.3 million and a tax rate of 35%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin