Identical sales and identical operating profit margins

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Firms A and B have identical Sales and identical operating profit margins but B has a smaller net profit margin. Which of the following is the most likely explanation?

Firm B spends more on marketing

Firm B uses much more long-term debt financing

Firm B pays a lower tax rate

Firm B has more depreciation expense

None of the above is a likely explanation

Reference no: EM131047694

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