Local Co. has sales of $10.5 million and cost of sales of $5.5 million. Its selling, general and administrative expenses are $480,000 and its research and development is $1.4 million. It has annual depreciation charges of $1.2 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?
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- Local Co. has sales of $10.3 million and cost of sales of $6.1 million. Its selling, general and administrative expenses are $460000 and its research and development is $1.1 million. It has annual depreciation charges of $1.1 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? d. If Local Co. had an increase in selling expenses of $270000, how would that affect each of its margins?Local Co. has sales of $10.4 million and cost of sales of $6.3 million. Its selling, general and administrative expenses are $490,000 and its research and development is $1.2 million. It has annual depreciation charges of $1.2 million and a tax rate of 28%. 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 two decimal places.)Local Co. has sales of $10.2 million and cost of sales of $6.2 million. Its selling, general and administrative expenses are $530,000 and its research and development is $1.4 million. It has annual depreciation charges of $1.2 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?
- Local Co. has sales of $10.9 million and cost of sales of $5.9 million. Its selling, general and administrative expenses are $500,000 and its research and development is $1.4 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 _____%.Local Co. has sales of $10.7 million and cost of sales of $6.4 million. Its selling, general and administrative expenses are $450,000 and its research and development is $1.4 million. It has annual depreciation charges of $1.2 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? d. If Local Co. had an increase in selling expenses of $330,000, how would that affect each of its margins? e. If Local Co.had interest expense of $770,000, how would that affect each of its margins? a. What is Local's gross margin? Local's gross margin is enter your response here %. (Round to one decimal place.) Part 3 b. What is Local's operating margin? Local's operating margin is enter your response here %. (Round to one decimal place.) Part 5 c. What is Local's net profit margin? Part 6 Local's net profit margin is enter your response here %. (Round to two decimal places.) d. If Local Co. had an increase in…Local Co. has sales of $10.4 million and cost of sales of $6.1 million. Its selling, general and administrative expenses are $540,000 and its research and development is $1.2 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 %. (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? Local's net profit margin is %. (Round to two decimal places.)
- Shane Co. has sales of $11.5 million and cost of sales of $5.6 million. Its selling, generaland administrative expenses are $550,000 and its research and development is $1.3million. It has annual depreciation charges of $1.4 million and a tax rate of 35%. a. What is Local's gross margin? (answer in %, Round to one decimal place.)Local Co. has sales of $10.9 million and cost of sales of $6.1 million. Its selling, general andadministrative expenses are $550,000 and its research and development is $1.1 million. It has annualdepreciation charges of $1.5 million and a tax rate of 25%. What is Local's net profit margin?Suppose a firm has the following information: Sales = $10million; costs of goods sold (excluding depreciation) = $5 million;depreciation = $1.4 million; other operating expenses = $2 million;interest expense = $1 million. If the tax rate is 25%, what is NOPAT,the net operating profit after taxes? ($1.2 million)
- DTO, Inc., has sales of $32 million, total assets of $25 million, and total debt of $7 million. a. If the profit margin is 6 percent, what is the net income? b. What is the ROA? c. What is the ROE?Hammett, Inc., has sales of $74,058, costs of $24,908, depreciation expense of $6,308, and interest expense of $1,766. If the tax rate is 31 percent, what is the operating cash flow, or OCF?Sheaves, Inc., has sales of $54,000, costs of $24,600, depreciation expense of $2,650, and interest expense of $2,400. If the tax rate is 21 percent, what is the operating cash flow, or OCF?