Question
Local Co. has sales of $ 10.0$10.0million and cost of sales of $ 6.0$6.0million. Itsselling, general and administrative expenses are$ 500 comma 000$500,000and its research
Local Co. has sales of $ 10.0$10.0million and cost of sales of $ 6.0$6.0million. Itsselling, general and administrative expenses are$ 500 comma 000$500,000and its research and development is $ 1.0$1.0million. It has annual depreciation charges of $ 1.0$1.0million and a tax rate of 35 %35%.
a. What isLocal's grossmargin?
b. What isLocal's operatingmargin?
c. What isLocal's net profitmargin?
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
