You estimate that your cattle farm will generate $0.40 million of profits on sales of $8 million under normal economic conditions and that the degree of operating leverage is 2.

a.What will profits be if sales turn out to be $4.0 million?(Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions.)

Profit will increase/decrease to __________ million

b.What will profits be if sales turn out to be $12.0 million?(Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)

Profit will increase/decrease to __________ million