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You estimate that your cattle farm will generate $1 million of profits on sales of $4.9 million under normal economic conditions and that the degree
You estimate that your cattle farm will generate $1 million of profits on sales of $4.9 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 $4.3 million? Note: Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.
B. What if they are $5.5 million? Note: Round your answer to 1 decimal place.
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