Local Co. has sales of

$ 10.6$10.6

million and cost of sales of

$ 5.6$5.6

million. Its selling, general and administrative expenses are

$ 500 comma 000$500,000

and its research and development is

$ 1.5$1.5

million. It has annual depreciation charges of

$ 1.1$1.1

million and a tax rate of

35 %35%.

a. What is Local's gross margin?

b. What is Local's operating margin?

c. What is Local's net profit margin?