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Spice sells paprika for $9.00 per bottle. Variable cost is $2.43 per bottle and Spice's annual fixed costs are $825,000. The variable expense ratio for paprika is

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ayokenny2001

The variable expense ratio for paprika is 27%.

What is variable cost?

Variable cost is the cost that vary with the level of output. It changes in proportion to how much a company produces or sells.

Using the formula below :

Variable expense ratio = Variable cost / Selling price

Where:

Variable cost = $2.43

Selling price= $9

Then,

Variable expense ratio = 2.43 / 9 × 100

Variable expense ratio = 27%

Hence, the variable expense ratio for paprika is 27%.

Learn more about variable expense here : https://brainly.com/question/26794520

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