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

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 8.

a. What will profits be if sales turn out to be $3.5 million?

b. What if they are $4.5 million?

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