Question: Operating Leverage. You estimate that your cattle farm will generate $1 million of profits on sales of $4 million under normal economic conditions, and that

Operating Leverage. You estimate that your cattle farm will generate $1 million of profits on sales of $4 million under normal economic conditions, and that the degree of operating leverage is 7.5. What will profits be if sales turn out to be $3.5 million? What if they are $4.5 million?

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