Local Co. has sales of $10.8 million and cost of sales of $5.7 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 $1.4 million and a tax rate of 25%. 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? e. If Local Co.had interest expense of $760,000, how would that affect each of its margins? a. What is Local's gross margin? Local's gross margin is %. (Round to one decimal place.)