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 25%. a. What is Local's gross margin? b. What is Local's operating margin? c. What is Local's net profit margin? d. If Local Co. had an increase in selling expenses of $300,000, how would that affect each of its margins? a. What is Local's gross margin? Local's gross margin is %. (Round to one decimal place.)