Question

Local Co. has sales of $ 10.5 million and cost of sales of $ 6.4 million. Its​ selling, general and administrative expenses are $ 460 comma 000 and its research and development is $ 1.1 million. It has annual depreciation charges of $ 1.2 million and a tax rate of 35 %. 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 nothing​%. ​(Round to one decimal​ place.)

Answer 1

Instructions are listed below

Step-by-step explanation:

Giving the following information:

Sales of $ 10.5 million and cost of sales of $ 6.4 million. Its​ selling, general and administrative expenses are $ 460 comma 000 and its research and development is $ 1.1 million. It has annual depreciation charges of $ 1.2 million and a tax rate of 35 %

Sales= 10,500,000

Cost of sales= 6,400,000 (-)

Gross profit= 4,100,000

Selling general and administrative= 460,000 (-)

research and development= 1,100,000 (-)

Depreciation= 1,200,000 (-)

Net operating profit= 1,340,000

Tax= 469,000 (-)

Net operating profit= 871,000