Local Co. has sales of $10.5 million and cost of sales of $5.9 million. Its? selling, general and administrative expenses are $520,000 and its research and development is $1.4 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?