akarta Company is a service firm with current service revenue of $400,000 and a 30% contribution margin. Its fixed costs are $48,000. Maldives Company has current sales of $6,600,000 and a 50% contribution margin. Its fixed costs are $2,145,000. A. What is the margin of safety for Jakarta and Maldives? If required, round final answers to one decimal place.
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Jakarta Company is a service firm with current service revenue of $400,000 and a 30% contribution margin. Its fixed costs are $48,000. Maldives Company has current sales of $6,600,000 and a 50% contribution margin. Its fixed costs are $2,145,000.
A. What is the margin of safety for Jakarta and Maldives? If required, round final answers to one decimal place.
The margin of safety is calculated by deducting the break-even sales from the actual sales of the company.
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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 $64,000. Maldives Company has current sales of $6,640,000 and a 50% contribution margin. Its fixed costs are $2,158,000. 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 $2,324,000 whereas Jakarta’s is $240,000.b. Maldives is stronger because its margin of safety is $240,000 whereas Jakarta’s is $2,324,000.c. Jakarta is stronger because its margin of safety is $2,324,000 whereas Maldives’s is $240,000.d. Jakarta is stronger because its margin of safety is $240,000 whereas Maldives’s is $2,324,000. _____ C. Compare the margin of safety in percentage between the two companies. Now, which…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 $6,630,000 and a 45% contribution margin. Its fixed costs are $1,790,100. 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 $2,652,000 whereas Jakarta's is $180,000. b. Maldives is stronger because its margin of safety is $180,000 whereas Jakarta's is $2,652,000. c. Jakarta is stronger because its margin of safety is $2,652,000 whereas Maldives's is $180,000. d. Jakarta is stronger because its margin of safety is $180,000 whereas Maldives's is $2,652,000. C. Compare the margin of safety in percentage between the two companies. Now, which one is…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 $6,550,000 and a 45% contribution margin. Its fixed costs are $1,795,500. 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: X% 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 $2,600,000 whereas Jakarta's is $180,000. b. Maldives is stronger because its margin of safety is $180,000 whereas Jakarta's is $2,660,000. c. Jakarta is stronger because its margin of safety is $2,550,000 whereas Maldives's is $180,000. d. Jakarta is stronger because its margin of safety is $180,000 whereas Maldives's is $2,660,000. C. Compare the margin of safety in percentage between the two companies. Now, which one is…
- 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 6Jakarta 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 $6,610,000 and a 45% contribution margin. Its fixed costs are $1,933,425. 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 $2,313,500 whereas Jakarta’s is $240,000.b. Maldives is stronger because its margin of safety is $240,000 whereas Jakarta’s is $2,313,500.c. Jakarta is stronger because its margin of safety is $2,313,500 whereas Maldives’s is $240,000.d. Jakarta is stronger because its margin of safety is $240,000 whereas Maldives’s is $2,313,500. C. Compare the margin of safety in percentage…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: 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 $2,656,000 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…
- 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 $6,610,000 and a 45% contribution margin. Its fixed costs are $1,800,000. What is the margin of safety for jaka rta and Maldives? Compare the margin of safety in dollars between the two companies. Which is stronger? Compare the margin of safety in percentage between the two companies. Now, which one is stronger? Compute the degree of operating leverage for both companies. Which company will benefit most from a 15% increase in sales? Explain why. Illustrate your findings in an Income Statement that is increased by 15%.Suppose that a manufacturer can produce a part for $11.00 with a fixed cost of $7,000. Alternately, the manufacturer could contract with a supplier in Asia to purchase the part at a cost of $13.00, which includes transportation. a. If the anticipated production volume is 1,300 units, compute the total cost of manufacturing and the total cost of outsourcing. b. What is the best decision? a. The total cost of manufacturing is $.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 $6,610,000 and a 45% contributionmargin. Its fixed costs are $1,800,000.A. What is the margin of safety for Jakarta and Maldives?B. Compare the margin of safety in dollars between the two companies. Which is stronger?C. Compare the margin of safety in percentage between the two companies. Now, which one is stronger?D. Compute the degree of operating leverage for both companies. Which company will benefit most froma 15% increase in sales? Explain why. Illustrate your findings in an Income Statement that is increased by 15%.
- Consider the following information for a given business. Sale revenue =GHS40,000 VC per unit =GHS20 Activity level =1,000 to break even Required: 1. Determine the TFC 2. Express the contribution as a percentage of sale. 3. The company plans to sale 1,500 unit in the next period. What will be the percentage margin of safety (MoS) 4. What margin should the business employ for planning purposes? 5. What total profit should the business expect in order to achieve it's planned sales?Border Supply Company is considering opening a plant in Vietnam, The company anticipates gross prafit of $3,500,000 from this new plant. It will cost $2,000,000 to set up the plant and $800,000 to train employees. An additional $160,000 will be spent to build relationships with the local suppliers. Do the benefits outweigh the costs or do the costs outweigh the benefits, and by how much? O Benefits outweigh costs by $540,000. O Costs outweigh benefits by $540,000. O Benefits outweigh costs by $700,000. O Costs outweigh benefits by $700,000.Explain margin of safety and why it is an important measurement for managers. 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 $6,610,000 and a 45% contribution margin. Its fixed costs are $1,800,000. A. What is the margin of safety for Jakarta and Maldives? B. Compare the margin of safety in dollars between the two companies. Which is stronger? C. Compare the margin of safety in percentage between the two companies. Now, which one is stronger?
