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

question 40

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.

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Definitions:

Freudian Psychoanalysis

A therapeutic technique and theory of psychology developed by Sigmund Freud, emphasizing unconscious motivations and conflicts.

Piaget's Theory

A developmental theory by Jean Piaget that describes how children develop logical thinking and cognitive abilities through a series of four stages from infancy to adolescence.

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A theory that suggests people can learn new behaviors and attitudes through observation of others' actions and consequences.