Local Co. has sales of $10.9 million and cost of sales of $5.8 million. Its selling, general and administrative expenses are $450,000 and its research and development is $1.3 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? d. If Local Co. had an increase in selling expenses of $330,000, how would that affect each of its margins? e. If Local Co.had interest expense of $850,000, how would that affect each of its margins? a. What is Local's gross margin? Locar b. What is Local's operating margin? Local's operating margin is %. (Round to one decimal place.) c. What is Local's net profit margin? Locars net profit margin is 1%. (Round to two decimal places.) d. If Local Co. had an increase in selling expenses of $330,000, how would that affect each of its margins? (Select the best choice below.) s gross margin is | (Round to one decimal place.) O A. Selling expenses only affect the operating margin, but the increase in such expenses will not affect the other margins. B. Sellina expenses onlv affect the aross marain, but the increase in such expenses will not affect the other marains