You estimate that your cattle farm will generate $$1$ million of profits on sales of $$4$ 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 $$3\mathrm{.}5$ million?

Note: Leave no cells blank $-$ be certain to enter $"0"$ wherever required. Do not round intermediate calculations. Enter your answers in millions.

Answer is complete but not entirely correct.

Profit will decrease million.

b$.$ What will profits be if sales turn out to be $$4\mathrm{.}5$ million?

Note: Do not round intermediate calculations. Enter your answers in millions.

Answer is complete but not entirely correct.

Profit will

increase

to

$ $5x$

million.