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Local Co. has sales of $10.3 million and cost of sales of $6.4 million. Its selling, general and administrative expenses are $500,000 and its research

Local Co. has sales of $10.3 million and cost of sales of $6.4 million. Its selling, general and administrative expenses are $500,000 and its research and development is $1.3 million. It has annual depreciation charges of $1.4 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?

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