Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Need help with blanks pls Jakarta Company is a service firm with current service revenue of $500,000 and a 30% contribution margin. Its fixed costs

Need help with blanks pls

image text in transcribed
Jakarta Company is a service firm with current service revenue of $500,000 and a 30% contribution margin. Its fixed costs are $60,000. Maldives Company has current sales of $6,660,000 and a 50% contribution margin. Its fixed costs are $2,164,500. 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 $2,331,000 whereas Jakarta's is $300,000. b. Maldives is stronger because its margin of safety is $300,000 whereas Jakarta's is $2,331,000. c. Jakarta is stronger because its margin of safety is $2,331,000 whereas Maldives's is $300,000. d. Jakarta is stronger because its margin of safety is $300,000 whereas Maldives's is $2,331,000. 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 35.0% whereas Jakarta's is 60%. b. Maldives is stronger because its % margin of safety is 50% whereas Jakarta's is 35.0%. c. Jakarta is stronger because its % margin of safety is 35.0% whereas Maldives's is 60%. d. Jakarta is stronger because its % margin of safety is 60% whereas Maldives's is 35.0%. d. v D. Compute the degree of operating leverage for both companies. If required, round final answers to two decimal places. Operating leverage: Jakarta Maldives

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting Principles Volume 2

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

8th Canadian Edition

1119502551, 1-119-50255-5, 978-1119502555

More Books

Students also viewed these Accounting questions

Question

=+b) Form the F-statistic by dividing the two mean squares.

Answered: 1 week ago

Question

Always have the dignity of the other or others as a backdrop.

Answered: 1 week ago