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Leno4ka [110]
4 years ago
9

Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed c

osts are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care.
What is the variable cost ratio?
a. 40%
b. 33%
c. 67%
d. 60%
e. 50%
Business
1 answer:
Lyrx [107]4 years ago
8 0

Answer:

the variable cost ratio is 60 % (option d)

Explanation:

The variable cost ratio (VCR) represents the ratio of variable costs to sales. Therefore

VCR = (total variable costs)/(total sales)

since

total variable costs = variable costs * services provided = $21/hour * 12000 hours/year = $252000 /year

total sales = price of service * services provided = $35/hour * 12000 hours/year = $420000 /year

thus

VCR = ($252000 /year) / ($420000 /year) = 0.6 = 60 %

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Answer:

The correct answer is option (b) 44,000

Explanation:

Solution

Given that:

From the question given, the first step to take is to find out how many square feet would the Building Maintenance cost be allocated

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evablogger [386]

Answer:

SWOT analysis.

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Ierofanga [76]

Answer:

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