Question

Plush & Cushy sells high-end desk chairs. The variable expenses per chair is $85.05 and the chairs sell for $189.00 each. The variable expense ratio for Plush & Cushy's chairs is ____________%.

Answer 1

The variable expense ratio for Plush & Cushy's chairs is 45.00%.

Step-by-step explanation:

The variable expense ratio for Plush & Cushy's chairs can be calculated by dividing the variable expenses per chair by the selling price per chair and multiplying by 100 to get a percentage. In this case, the variable expenses per chair is $85.05, and the selling price per chair is $189.00.

Variable expense ratio = (variable expenses per chair / selling price per chair) x 100

Variable expense ratio = ($85.05 / $189.00) x 100

Variable expense ratio = 45.00%

Therefore, the variable expense ratio for Plush & Cushy's chairs is 45.00%.