Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. What is the variable cost ratio?
A)50%
B)60%
C)40%
D)33%
E)67%

Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care.

Variable cost ratio= unitary variable cost/ selling price= 21/35= 0.6= 60%

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Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. What is the variable cost ratio? A)50% B)60% C)40% D)33% E)67%

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Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. What is the variable cost ratio?
A)50%
B)60%
C)40%
D)33%
E)67%