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Local Co. has sales of $ 10.0 million and cost of sales of $ 6.0 million. Its selling, general and administrative expenses are$ 500,000 and
Local Co. has sales of $ 10.0 million and cost of sales of $ 6.0 million. Its selling, general and administrative expenses are$ 500,000 and its research and development is $ 1.0 million. It has annual depreciation charges of $ 1.0 million and a tax rate of 35 %. Local's gross margin is 40.00%, its operating margin is 15.00%, and its net profit margin is 9.75%. If Local Co. had interest expense of $ 800,000, how would that affect each of its margins?
Local's new gross margin is ___%,
new operating margin is ___%,
and new net profit margin is ___%.
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