Question

Seating Galore sells high-end desk chairs. The variable expense per chair is $85.05 and the chairs sell for $189.00 each. The variable expense ratio for Seating Galore's chairs is

Answer 1

Answer:

Variable expense ratio= 0.45

Explanation:

Giving the following information:

The variable expense per chair is $85.05 and the chairs sell for $189.00 each.

To calculate the variable expense ratio, we need to use the following formula:

Variable expense ratio= variable cost per unit / selling price

Variable expense ratio= 85.05 / 189

Variable expense ratio= 0.45