Sperberg Corporation's operating leverage is 4.4. If the company's sales increase by 12%, its net operating income should increase by about: a. 12.0% b. 2.7% c. 39.2% d. 52.8%
Sperberg Corporation's operating leverage is 4.4. If the company's sales increase by 12%, its net operating income should increase by about: a. 12.0% b. 2.7% c. 39.2% d. 52.8%
Chapter16: Financial Planning And Control
Section: Chapter Questions
Problem 18PROB
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Sperberg corporation operating leverage solution this question
![Sperberg Corporation's operating leverage is 4.4. If the
company's sales increase by 12%, its net operating
income should increase by about:
a. 12.0%
b. 2.7%
c. 39.2%
d. 52.8%](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdd2bddee-7178-4240-ac90-bc3a9da84fd9%2F591129a9-8ec0-4bdc-82ef-d0a32a186f42%2Fx5e1te_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Sperberg Corporation's operating leverage is 4.4. If the
company's sales increase by 12%, its net operating
income should increase by about:
a. 12.0%
b. 2.7%
c. 39.2%
d. 52.8%
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