Required information Borsberry Medical has a gross income of $6.7 million for the year. Depreciation and operating expenses total $5.5 million. The combined state and local tax rate is 7.6%. orsberry's president hopes to have a total of $2 million left after taxes. What reduction in operating expenses (OE) is necessary to ealize this goal if the effective tax rate and depreciation are constant? he necessary reduction in operating expenses (OE) is determined to be $