Local Co. has sales of $10.3 million and cost of sales of $5.6 million. Its selling, general,

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Local Co. has sales of $10.3 million and cost of sales of $5.6 million. Its selling, general, and administrative expenses are $520,000 and its research and development is

$1.3 million. It has annual depreciation charges of $1.4 million and a tax rate of 25%.

a. What is Local’s gross margin?

b. What is Local’s operating margin?

c. What is Local’s net profit margin?

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Fundamentals Of Corporate Finance

ISBN: 9781292437156

5th Global Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Question Posted: Feb 27, 2024 03:07 AM

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Local Co. has sales of $10.3 million and cost of sales of $5.6 million. Its selling, general,

Question:

Step by Step Answer:

We can calculate Locals profitability ratios using the following steps a Gross Margin Gross ...View the full answer

Fundamentals Of Corporate Finance

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