### What is locals operating margin

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Local Co. has sales of \$10.4 million and cost of sales of \$6.4 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 \$1.3 million and a tax rate of 35%.
a. What is Locals gross margin?
b. What is Locals operating margin?
c. What is Locals net profit margin?

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