Green Acres Company Provides Home Health Care

Multiple Choice

Green Acres Company provides home health care. Green Acres charges $35 per hour for professional care. Variable casts are $21 per hour and fixed costs are $78,000. Next year, Green Acres expects to charge out 12,000 hours of home health care.
-Refer to the Figure.What is the contribution margin ratio?

A) 33%
B) 40%
C) 50%
D) 60%