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%

EBK CFIN
6th Edition
ISBN:9781337671743
Author:BESLEY
Publisher:BESLEY
Chapter16: Financial Planning And Control
Section: Chapter Questions
Problem 18PROB
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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%
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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