Local Co. has sales of $10.6 million and a cost of sales of $6.3 million. It's selling, general, and administrative expenses are$470,000, and its research and development is $1.4 million. It has annual depreciation charges of $1.3 million and a tax rate of 35%.

Local's gross margin is 40.5%.

Local's operating margin is 10.6%.

c. What is Local's net profit margin? (Round to two decimal places.)