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.