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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%

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%

Principles of Accounting Volume 2
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

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%
Transcribed Image Text: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%
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