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You estimate that your cattle farm will generate $.20 million of profits on sales of $4 million under normal economic conditions and that the degree
You estimate that your cattle farm will generate $.20 million of profits on sales of $4 million under normal economic conditions and that the degree of operating leverage is 5. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.) |
a. | What will profits be if sales turn out to be $3.2 million? |
Profit will | (Click to select)increasedecrease to | $ million. |
b. | What if they are $4.8 million? |
Profit will | (Click to select)increasedecrease to | $ million. |
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