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Question: Local Co. has sales of $10.4 million and cost of sales of $6.3 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 $1.5 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?
Write a 250 answer an describing explanation of the pricing of the issue. Support your work with at least one scholarly reference besides the textbooks.
Fortas Bank is reviewing its credit policy and has asked you to review the various ways that the Fed can affect the granting of credit in the economy. Write a 250-word response that addresses the following questions:
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