Local Co. has sales of $10.3 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $510,000 and its research and development is $1.2 million. It has annual depreciation charges of $1.2 million and a tax rate of25%.

a. What is Local's gross margin? (answer in %, Round to one decimal place.)

b. What is Local's operating margin? (answer in %, Round to one decimal place.)

c. What is Local's net profit margin? (answer in %, Round to two decimal places.)

Answer rating: 100% (QA)

Local Cos Profitability Analysis a Gross Margin Gross Profit Sales Cost of Sales Gross Profit 103 ... View the full answer