Local Co. has sales of

$ 10.3$10.3

million and cost of sales of

$ 6.3$6.3

million. Its selling, general and administrative expenses are

$ 550 comma 000$550,000

and its research and development is

$ 1.1$1.1

million. It has annual depreciation charges of

$ 1.2$1.2

million and a tax rate of

35 %35%.

a. What is Local's gross margin?

b. What is Local's operating margin?

c. What is Local's net profit margin?