Local Co. has sales of $10.5 million and cost of sales of $6.4 million. Its selling, general and administrative expenses are $510,000 and its research and development is $1.3 million. It has annual depreciation charges of $1.2 million and a tax rate of 28%. 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 $320,000, how would that affect each of its margins? e. If Local Co. had interest expense of $800,000, how would that affect each of its margins? a. What is Local's gross margin? Local's gross margin is \%. (Round to two decimal places.)