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You estimate that your cattle farm will generate $1 million of profits on sales $4 million under normal economic conditions, and that the degree of
You estimate that your cattle farm will generate $1 million of profits on sales $4 million under normal economic conditions, and that the degree of operating leverage is 7.5. What will profits be if sales turn out to be $3.5 million?
A. $62,500
B. 71,429
C. 1,062,500
D. 937,500
E. 1,071,429
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