You estimate that your cattle farm will generate $1 million of profits on sales of $6.2 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 $5.4 million?

Please show calculations. Thanks.

Profits will decline by % b. What if they are $7.0 million? (Round your answer to 1 decimal place.) Profits will increase by %