Local Co. has sales of $10.3 million and cost of sales of $6.3 million. Its...
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Finance
Local Co. has sales of
$10.3 million and cost of sales of
$6.3 million. Its selling, general and administrative expenses are
$530,000 and its research and development is
$1.4 million. It has annual depreciation charges of
$1.1 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?
d. If Local Co. had an increase in selling expenses of
$350,000, how would that affect each of its margins?
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