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 budgeted operating income?

A) $90,000
B) $168,000
C) $174,000
D) $342,000