Local Co. has sales of $10.7 million and cost of sales of $5.8 million. Its...
70.2K
Verified Solution
Link Copied!
Question
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.)
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
