Which of the following statements is correct concerning changes from year 1 to year 2 at Tricrop?
A. Despite favorable changes in the tax rate return on net operating assets has decreased
B. Despite favorable changes in net operating asset utilization return on net operating assets has decreased
C. Largely because of favorable changes in tax rates return on net operating assets has increased
D. Largely due to favorable changes in leverage return on net operating assets has increased
Answer: A
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