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klemol [59]
3 years ago
8

Jakarta Company is a service firm with current service revenue of $500,000 and a 40% contribution margin. Its fixed costs are $8

0,000. Maldives Company has current sales of $6,620,000 and a 50% contribution margin. Its fixed costs are $2,151,500. A. What is the margin of safety for Jakarta and Maldives
Business
1 answer:
Lady_Fox [76]3 years ago
7 0

Answer and Explanation:

The computation of the margin of safety is shown below:

As we know that

margin of safety = Actual sales - break even sales

For Jakarta, it is

= $500,000 - ($80,000 ÷ 0.40)

= $500,000 - $200,000

= $300,000

And, for maldives, it is

= $6,620,000 - ($2,151,500 ÷ 50%)

= $2,317,000

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Obstructionist Stance.

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221,672

Explanation:

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4 0
3 years ago
Read 2 more answers
1. Issued 30,000 shares of common stock in exchange for $300,000 in cash.
Svetradugi [14.3K]

Solution :

       Assets          =   Liabilities   +   Paid in capital   +   retained earnings

1.   $ 300,000                                  $ 300,000

2.   $ 30,000             $ 30,000

3.   $ 90,000             $ 90,000

4.   $ 50,000                                                                        $ 50,000

5.   $ 5,000                                                                          $ 5,000

6.   $ 6,000                                                                          $ 6,000

7.   $ 70,000            $ 70,000        

8.      --

9.    $ 1,000                                                                          $ 1,000

Point 4 -- the accounts receivable will increase by $ 120,000 due to the credit sales and the cost of goods sold.

Point 6 -- Adjustments entry at the year end for 3 months from January to March 2022 should be reduced from both assets and retained earnings and the adjusted amount would be $ 4500.

Point 8 -- No impact as the cash is collected against the account receivable and both are assets.

5 0
3 years ago
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Answer:

(1). Demand of radically innovative new product

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Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $1,350 per
ehidna [41]

Answer:

the increase in the total operating income is $33,750,000

Explanation:

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Hence, the increase in the total operating income is $33,750,000

We simply applied the above formula so that the correct amount could come

And, the same is relevant

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