Local Co. has sales of $ 10.0$ million and cost of sales of $ $6.0 million. Its selling, general and administrative expenses are $500,000 and its research and development is $1.0 million. It has annual depreciation charges of $1.0 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?