Lightning Electronics reported the following financial figures for the year:

Revenue: $$5$ billion

Net Income: $$350$ million

Total Assets: $$4\mathrm{.}5$ billion

Required: Based on the financial data provided, calculate a reasonable

materiality threshold using a percentage of total revenue, total assets, or net

income. Common benchmarks are $0\mathrm{.}5\%$ to $1\%$ of revenue, $1\%$ to $2\%$ of total

assets, or $5\%$ to $10\%$ of net income. Share your approach to calculating

materiality and explain why this level of materiality would be appropriate for

Lightning Electronics.