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You estimate that your cattle farm will generate $0.25 million of profits on sales of $5 million under normal economic conditions and that the degree
You estimate that your cattle farm will generate $0.25 million of profits on sales of $5 million under normal economic conditions and that the degree of operating leverage is 2.(Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions.)
a.What will profits be if sales turn out to be $2.5 million?
b.What if they are $7.5 million?
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