Pauley Company provides home health care. Pauley charges $35/hour for professional care. Variable costs are $21/hour and fixed costs are $78,000. Next year, Pauley expects to charge out 12,000 hours of home health care. Refer to Figure 4-2. What is the contribution margin ratio? 67% 60% 40% 33% 50%

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A: Answer Formula =  Contribution margin =      Sales - variable cost / sales

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