D. Compute the degree of operating leverage for both companies. If required, round final answers to two decimal places. Operating leverage: Jakarta 4 Maldives Compare the degree of operating leverage for both companies. Which company will benefit most from a 10% increase in sales? a. Operating leverage for Jakarta is 1.67; for Maldives it is 2.50. Maldives will benefit most from an increase in sales. b. Operating leverage for Jakarta is 1.67; for Maldives it is 2.50. Jakarta will benefit most from an increase in sales. C. Operating leverage for Jakarta is 2.50; for Maldives it is 1.67. Maldives will benefit most from an increase in sales. d. Operating leverage for Jakarta is 2.50; for Michelle it is 1.67. Jakarta will benefit most from an increase in sales. a. Feedback Check My Work A. Remember that the margin of safety is the difference between the current (actual) sales and the break-even sales. The margin of safety percentage is determined by dividing the break-even sales amount by the current sales amount. B. A larger margin of safety amount is desirable. C. A larger margin of safety percentage is desirable. Percentages also provide a comparison of margin of safety between different sized companies in terms of sales amount. Jakarta Company is a service firm with current service revenue of $400,000 and a 40% contribution margin. Its fixed costs are $64,000. Maldives Company has current sales of $6,640,000 and a 50% contribution margin. Its fixed costs are $1,992,000. A. What is the margin of safety for Jakarta and Maldives? If required, round final answers to one decimal place. Margin of safety for Jakarta: % Margin of safety for Maldives: % B. Compare the margin of safety in dollars between the two companies. Which is stronger? a. Maldives is stronger because its margin of safety is $2,656,000 whereas Jakarta's is $240,000. b. Maldives is stronger because its margin of safety is $240,000 whereas Jakarta's is $2,656,000. c. Jakarta is stronger because its margin of safety is $2,656,000 whereas Maldives's is $240,000. d. Jakarta is stronger because its margin of safety is $240,000 whereas Maldives's is $2,656,000. a. C. Compare the margin of safety in percentage between the two companies. Now, which one is stronger? a. Maldives is stronger because its % margin of safety is 40.0% whereas Jakarta's is 60%. b. Maldives is stronger because its % margin of safety is 50% whereas Jakarta's is 40.0%. C. Jakarta is stronger because its % margin of safety is 40.0% whereas Maldives's is 60%. d. Jakarta is stronger because its % margin of safety is 60% whereas Maldives's is 40.0%. d. D. Compute the degree of operating leverage for both companies. If required, round final answers to two decimal places