Local Co. has sales of $ 10.9 million and cost of sales of $ 6.2 million. Its​ selling, general and administrative expenses are $510, 000 and its research and development is $1.4 million. It has annual depreciation charges of $1.2 million and a tax rate of 35 %. ​Local's gross margin is 43.12​%, its operating margin is 14.59​%, and its net profit margin is 9.48​%. If Local Co. had interest expense of $900,000​, how would that affect each of its​ margins?



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