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You estimate that your cattle farm will generate $1 million of profits on sales of $5.0 million under normal economic conditions and that the degree
You estimate that your cattle farm will generate $1 million of profits on sales of $5.0 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 $4.4 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.)
b. What if they are $5.6 million? (Round your answer to 1 decimal place.)
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