You estimate that your cattle farm will generate $1 million of profits on sales of $5.4 million under normal economic conditions and that the degree of operating leverage is 8. What will profits be if sales turn out to be $4.7 million? Note: Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place. What if they are $6.1 million? Note: Round your answer to 1 decimal place.
You estimate that your cattle farm will generate $1 million of profits on sales of $5.4 million under normal economic conditions and that the degree of operating leverage is 8. What will profits be if sales turn out to be $4.7 million? Note: Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place. What if they are $6.1 million? Note: Round your answer to 1 decimal place.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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You estimate that your cattle farm will generate $1 million of profits on sales of $5.4 million under normal economic conditions and that the degree of operating leverage is 8.
What will profits be if sales turn out to be $4.7 million?
Note: Negative amount should be indicated by a minus sign. Round your answer to 1 decimal place.
What if they are $6.1 million?
Note: Round your answer to 1 decimal place.
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