The following information relates to Paterno Company: Sales revenue $10,000,000Contribution margin 4,000,000Net income 1,000,000If a manager at Paterno desired to determine the percentage impact on net income of a given percentage change in sales, the manager would multiply the percentage increase/decrease in sales revenue by: A) 0.25. B) 0.40. C) 2.50. D) 4.00. E) 10.00.
The following information relates to Paterno Company: Sales revenue $10,000,000Contribution margin 4,000,000Net income 1,000,000If a manager at Paterno desired to determine the percentage impact on net income of a given percentage change in sales, the manager would multiply the percentage increase/decrease in sales revenue by: A) 0.25. B) 0.40. C) 2.50. D) 4.00. E) 10.00.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information relates to Paterno Company: Sales revenue $10,000,000Contribution margin 4,000,000Net income 1,000,000If a manager at Paterno desired to determine the percentage impact on net income of a given percentage change in sales, the manager would multiply the percentage increase/decrease in sales revenue by:
A) 0.25.
B) 0.40.
C) 2.50.
D) 4.00.
E) 10.00.
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