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You estimate that your cattle farm will generate $1 million of profits on sales of $5.5 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 $4.8 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.) Profits will by % b. What if they are $6.2 million? (Round your answer to 1 decimal place.) Profits will by %

You estimate that your cattle farm will generate $1 million of profits on sales of $5.5 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 $4.8 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.) Profits will by % b. What if they are $6.2 million? (Round your answer to 1 decimal place.) Profits will by %

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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You estimate that your cattle farm will generate $1 million of profits on sales of $5.5 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 $4.8 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.) Profits will by % b. What if they are $6.2 million? (Round your answer to 1 decimal place.) Profits will by %
Transcribed Image Text:You estimate that your cattle farm will generate $1 million of profits on sales of $5.5 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 $4.8 million? (Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.) Profits will by % b. What if they are $6.2 million? (Round your answer to 1 decimal place.) Profits will by %
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