Give true answer this accounting question Sperberg Corporation's operating leverage is4.8. If the company's sales increase by13.75%, its net operating income shouldincrease by about:a. 13.75%b. 4.80%c. 57.05%d. 66.00%

Step 1: Define Operating leverageOne of the measure used in the cost accounting by the business…

Answered: Sperberg Corporation's 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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Sperberg Corporation's operating leverage is 4.8. If the company's sales increase by 13.75%, its net operating income should increase by about: a. 13.75% b. 4.80% c. 57.05% d. 66.00%