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Local Co. has sales of $10.4 million and cost of sales of $6.5 million. Its selling, general and administrative expenses are $520,000 and its research
Local Co. has sales of $10.4 million and cost of sales of $6.5 million. Its selling, general and administrative expenses are $520,000 and its research and development is $1.1 million. It has annual depreciation charges of $1.3 million and a tax rate of 35%. Local's gross margin is 37.50%, its operating margin is 9.42%, and its net profit margin is 6.13%. If Local Co. had interest expense of $900,000, how would that affect each of its margins? Local's new gross margin is%, new operating margin is%, and new net profit margin is% (Round to two decimal places.)
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