You estimate that your cattle farm will generate $0.10 million of profits on sales of $2 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.)
a. What will profits be if sales turn out to be $1.6 million?
b. What if they are $2.4 million?
