Question
You estimate that your cattle farm will generate $0.15 million of profits on sales of $ 3 million under normal economic conditions and that the
You estimate that your cattle farm will generate $0.15 million of profits on sales of $ 3 million under normal economic conditions and that the degree of operating leverage is 2. Answer in millions
a. What will profits be if sales turn out to be $ 1.5 million?
Profit will be __ to ____ million
b. What if they are $ 4.5 million?
Profit will ____ to ____ million
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
