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Local Co. has sales of $10.6 million and cost of sales of $6.1 million. Its selling, general and administrative expenses are $510,000 and its research and development is $1.3 million. It has annual depreciation charges of $1.1 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? a. What is Loca's gross margin? Local's gross margin is 42.5%. (Round to one decimal place.) b. What is Local's operating margin? Local's operating margin is %. (Round to one decimal place.)