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Local Co has sales of $10.4 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $530,000 and its research and development is $1.3 million. It has ann 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? a. What is Local's gross margin? Local's gross margin is. (Round to one decimal place.) b. What is Local's operating margin? Local's operating margin is % (Round to one decimal place.) c. What is Local's net profit margin? ocal's net profit margin is %. (Round to two decimal places) XT

Local Co has sales of $10.4 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $530,000 and its research and development is $1.3 million. It has ann 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? a. What is Local's gross margin? Local's gross margin is. (Round to one decimal place.) b. What is Local's operating margin? Local's operating margin is % (Round to one decimal place.) c. What is Local's net profit margin? ocal's net profit margin is %. (Round to two decimal places) XT

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Local Co. has sales of $10.4 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $530,000 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? a. What is Local's gross margin? Local's gross margin is 19 is b. What is Local's operating margin? Local's operating margin is%. (Round to one decimal place) c. What is Local's net profit margin? Local's net profit margin is %. (Round to two decimal places) %. (Round to one decimal place.) 13 C
Transcribed Image Text:Local Co. has sales of $10.4 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $530,000 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? a. What is Local's gross margin? Local's gross margin is 19 is b. What is Local's operating margin? Local's operating margin is%. (Round to one decimal place) c. What is Local's net profit margin? Local's net profit margin is %. (Round to two decimal places) %. (Round to one decimal place.) 13 C
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