1. (TCO D) The net operating profit margin is 19% for WidgetCo and 21% for Tool. Which of the following statements is the most plausible explanation of the difference in observed net operating profit margins? (Points : 3)

WidgetCo's has lower financial leverage. WidgetCo uses LIFO and Tools uses FIFO. WidgetCo's has a lower tax rate. WidgetCo's net operating asset turnover.