Pa8.
lo 3.5jakarta 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 jakarta 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%.

Over the past several years, joyce chen has been able to save regularly. as a result, today she has $54,188 in savings and investments. she wants to establish her own business in 5 years and feels she will need $100,000 to do so. a. if she can earn 6% on her money, how much will her $54,188 in savings/investments be worth in 5 years? will joyce have the $100,000 she needs? if not, how much more money will she need? b. given your answer to part a, how much will joyce have to save each year over the next 5 years to accumulate the additional money? assume she can earn interest at a rate of 6%. c. if joyce can afford to save only $4,000 a year then, given your answer to part a, will she have the $100,000 she needs to start her own business in 5 years?