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%
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%
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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Transcribed Image Text: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%
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