Please give me true answer this general accounting question Silverstone Inc. has an operating leverage of 9.5. If the company's salesincrease by 12%, its net operating income should increase byapproximately:A) 114.0%B) 12.0%C) 79.5%D) 9.5%

Step 1: Define Operating Leverage ImpactOperating Leverage Impact The degree of operating leverage…

Answered: Silverstone Inc. has an operating…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter3: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 23MC: If a firm has a contribution margin of $78M90 and a net income of $13,700 for the current month,...

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Silverstone Inc. has an operating leverage of 9.5. If the company's sales increase by 12%, its net operating income should increase by approximately: A) 114.0% B) 12.0% C) 79.5% D) 9.5%