Local Co. has sales of $ 10.6 million and cost of sales of $ 6.2 million. Its selling, general and administrative expenses are$ 490 comma 000 and its research and development is $ 1.3 million. It has annual depreciation charges of $ 1.5 million and a tax rate of 35 %.

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 $ 290 comma 000, how would that affect each of its margins?

e. If Local Co.had interest expense of $ 800 comma 000, how would that affect each of its margins?