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Local Co. has sales of $10.6 million and cost of sales of $5.6 million. Its selling, general and administrative expenses are $540,000and its research and

Local Co. has sales of $10.6 million and cost of sales of $5.6 million. Its selling, general and administrative expenses are $540,000and its research and development is $1.4 million. It has annual depreciation charges of $1.4 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?

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