Local Co. has sales of $10.6 million and cost of sales of $5.5 million. Its selling, general and administrative expenses are $530,000 and its research and development is $1.5 million. It has annual depreciation charges of $1.2 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 $350,000, how would that affect each of its margins