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Local Co . has sales of $ 1 0 . 2 million and cost of sales of $ 6 . 5 million. Its selling, general

Local Co. has sales of $ 10.2 million and cost of sales of $ 6.5 million. Its selling, general and administrative expenses are$ 550 comma 000 and its research and development is $ 1.4 million. It has annual depreciation charges of $ 1.2 million and a tax rate of 35%.Local's gross margin is 36.27%, its operating margin is 5.39%, and its net profit margin is 3.50%. If Local Co. had an increase in selling expenses of $ 200 comma 000, how would that affect each of its margins?

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