Accouting Question 1b

Accounting
Tutor: None Selected Time limit: 1 Day

Sperberg Corporation's operating leverage is 3.8. If the company's sales increase by 10%, its net operating income should increase by about:

2.6%

Jun 22nd, 2015

Thank you for the opportunity to help you with your question!

It's 38% :)

Assets/Debt = Operating leverage

Assets and OL are directly related, so if you multiply one side by a number, you multiply the other side by the same number. 

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jun 22nd, 2015

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