Identical gross profit margins

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Corporations A and B have identical gross profit margins; however, Firm B has a much larger operating profit margin. Which of the following is the most likely explanation?

Firm A faces a very high tax rate

Firm A pays premium wages to attract only the most best, most productive machinists, electricians, lathe operators and other skilled shop workers

Firm A borrows far more money than Firm B to fund their assets.

Firm A spends much more money on marketing their products than Firm B.

Reference no: EM131498495

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