If Local Co. had an increase in selling expenses of $300,000, how would that affect each of its margins?
A. Selling expenses only affect the operating margin, but the increase in such expenses will not affect the other margins.
B. Selling expenses only affect the gross margin, but the increase in such expenses will not affect the other margins.
C. Selling expenses only affect the net profit margin, but the increase in such expenses will not affect the other margins.
D. Selling expenses do not affect the gross margin, but the increase in such expenses will decrease the other margins.
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