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Local Co. has sales of $10.7 million and cost of sales of $5.8 million. Its...

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Finance

Local Co. has sales of $10.7 million and cost of sales of $5.8 million. Its selling, general and administrative expenses are$500,000 and its research and development is $1.1 million. It has annual depreciation charges of $1.5 million and a tax rate of 35%. Local's gross margin is 45.79%, its operating margin is 16.82%, and its net profit margin is 10.93%. If Local Co. had interest expense of $800,000, how would that affect each of its margins?

Local's new gross margin is ___%, new operating margin is ___%, and new net profit margin is ___ %.

(Round to two decimal places.)

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