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%   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

Principles of Accounting Volume 2
19th Edition
ISBN:9781947172609
Author:OpenStax
Publisher:OpenStax
Chapter3: Cost-volume-profit Analysis
Section: Chapter Questions
Problem 8PA: Jakarta Company is a service firm with current service revenue of $400,000 and a 40% contribution...
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Jakarta Company is a service firm with current service revenue of $300,000 and a 30% contribution margin. Its fixed costs are $36,000. Maldives Company has current sales of $6,560,000 and a 45% contribution margin. Its fixed costs are $1,918,800.

 

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%

 

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
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