Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

6 1.25 points Return to question You estimate that your cattle farm will generate $1 million of profits on sales of $6.0 million under

image text in transcribed

6 1.25 points Return to question You estimate that your cattle farm will generate $1 million of profits on sales of $6.0 million under normal economic conditions and that the degree of operating leverage is 8. a. What will profits be if sales turn out to be $5.2 million? Note: Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place. b. What if they are $6.8 million? Note: Round your answer to 1 decimal place. * Answer is complete but not entirely correct. a. Profits will decline by 106.7% b. Profits will increase by 106.7 %

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Entrepreneurial Finance

Authors: J . chris leach, Ronald w. melicher

4th edition

538478152, 978-0538478151

More Books

Students also viewed these Finance questions

Question

How does natural writing improve ease of reading?

Answered: 1 week ago