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Local Co. has sales of 10.5 million and cost of sales of 6.1 million. Its selling, general and administrative expenses are 500,000 and its research

Local Co. has sales of 10.5 million and cost of sales of 6.1 million. Its selling, general and administrative expenses are 500,000 and its research and development is 1.4 million. It has annual depreciation charges of 1.3 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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