Question
Local Co. has sales of $10.6 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $550,000 and its research
Local Co. has sales of $10.6 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $550,000 and its research and development is $1.3 million. It has annual depreciation charges of $1.1 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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Advanced Accounting
Authors: Debra C. Jeter, Paul Chaney
5th Edition
978-1118098615
