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Jakarta Company is a service firm with current service revenue of $500,000 and a 40% contribution margin. Its fixed costs are $100,000. Maldives Company has current sales of $6,580,000 and a 50% contribution margin. Its fixed costs are $1,974,000. 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 $2,632,000 whereas Jakarta's is $250,000. b. Maldives is stronger because its margin of safety is $250,000 whereas Jakarta's is $2,632,000. C. Jakarta is stronger because its margin of safety is $2,632,000 whereas Maldives's is $250,000. d. Jakarta is stronger because its margin of safety is $250,000 whereas Maldives's is $2,632,000. b. 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 50%. 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 50%. d. Jakarta is stronger because its % margin of safety is 50% whereas Maldives's 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 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 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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