Figure 4-2

Figure 4-2. 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 per hour?

A) $21
B) $35
C) $14
D) $56
E) $6.50