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Local Co. has sales of $10.9 million and cost of sales of $5.6 million. Itsselling, general and administrative expenses are$500,000 and its research and development

Local Co. has sales of $10.9 million and cost of sales of $5.6 million. Itsselling, general and administrative expenses are$500,000 and its research and development is $1.2 million. It has annual depreciation charges of $1.4 million and a tax rate of 35%.

a. What isLocal's grossmargin?

b. What isLocal's operatingmargin?

c. What isLocal's net profitmargin?

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