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

Are you studying on the go? Check out our FREE app and post questions on the fly!
Download on the
App Store
...
Jun 22nd, 2015
...
Jun 22nd, 2015
Dec 7th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer