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 per hour?

A) $6.50
B) $14.00
C) $21.00
D) $35.00