Jakarta Company is a service firm with current service revenue of $337,452 and a 31%contribution margin. Its fixed costs are $87,554. Maldives Company has current sales of$3,678,029 and a 60% contribution margin. Its fixed costs are $1,064,359.If there is a 12% in sales, compute the percentage of net increase in operating income forMaldives. Round to the nearest hundredth, two decimals.

Contribution Margin=Sales-Variable Cost Contribution Margin Ratio=(Contribution Margin/Sales) X 100

Answered: If there is a 12% in sales, compute the…

If there is a 12% in sales, compute the percentage of net increase in operating income for Maldives. Round to the nearest hundredth, two decimals.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Question

Jakarta Company is a service firm with current service revenue of $337,452 and a 31%
contribution margin. Its fixed costs are $87,554. Maldives Company has current sales of
$3,678,029 and a 60% contribution margin. Its fixed costs are $1,064,359.
If there is a 12% in sales, compute the percentage of net increase in operating income for
Maldives. Round to the nearest hundredth, two decimals.

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