The Following Information Relates to Paterno Company If a Manager at Paterno Desired to Determine the Percentage

Multiple Choice

The following information relates to Paterno Company: $\begin{array} { | l | r | } \hline \text { Sales revenue } & \$ 10,000,000 \\\hline \text { Contribution margin } & 4,000,000 \\\hline \text { Net income } & 1,000,000 \\\hline\end{array}$ If 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.