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 ratio?

A) 67%
B) 60%
C) 40%
D) 33%
E) 50%