Question

Plush Cushy sells high-end desk chairs. The variable expense 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%.

Step-by-step explanation:

To calculate the total revenue, you multiply the selling price of the chairs by the number of units sold. In this case, the selling price is $189 and the number of units sold is not mentioned in the question. Assuming we are considering the total revenue for all the chairs sold by Plush Cushy, we need that information to calculate the total revenue.

The variable expense ratio is calculated by dividing the variable expense per unit by the selling price per unit. In this case, the variable expense per chair is $85.05 and the selling price per chair is $189. To find the variable expense ratio, we divide $85.05 by $189 and multiply by 100 to express it as a percentage. The variable expense ratio for Plush Cushy's chairs is 45%.