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Jakarta Company is a service firm with current service revenue of $400,000 and a 40% contribution margin. Its fixed costs are $80,000. Maldives Company has

Jakarta Company is a service firm with current service revenue of $400,000 and a 40% contribution margin. Its fixed costs are $80,000. Maldives Company has current sales of $6,560,000 and a 50% contribution margin. Its fixed costs are $1,968,000. 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: fill in the blank 1 % Margin of safety for Maldives: fill in the blank 2 % 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 $2,624,000 whereas Jakartas is $200,000. b. Maldives is stronger because its margin of safety is $200,000 whereas Jakartas is $2,624,000. c. Jakarta is stronger because its margin of safety is $2,624,000 whereas Maldivess is $200,000. d. Jakarta is stronger because its margin of safety is $200,000 whereas Maldivess is $2,624,000. 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 Jakartas is 50%. b. Maldives is stronger because its % margin of safety is 50% whereas Jakartas is 40.0%. c. Jakarta is stronger because its % margin of safety is 40.0% whereas Maldivess is 50%. d. Jakarta is stronger because its % margin of safety is 50% whereas Maldivess is 40.0%. D. Compute the degree of operating leverage for both companies. If required, round final answers to two decimal places. Operating leverage: Jakarta fill in the blank 5 Maldives fill in the blank 6 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 2.00; for Maldives it is 2.50. Maldives will benefit most from an increase in sales. b. Operating leverage for Jakarta is 2.00; 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 2.00. Maldives will benefit most from an increase in sales. d. Operating leverage for Jakarta is 2.50; for Michelle it is 2.00. Jakarta will benefit most from an increase in sales.

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