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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%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 14P
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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%
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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