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 degree
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.
What will profits be if sales turn out to be $1.5 million?
Note: Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions.
What will profits be if sales turn out to be $4.5 million?
Note: Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.
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Fundamentals of Corporate Finance
Authors: Richard Brealey, Stewart Myers, Alan Marcus
8th edition
77861620, 978-0077861629
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