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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
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 %
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