You estimate that your cattle farm will generate $0.15 million of profits on sales of $3 million under normal economic conditions and that the degree of operating leverage is 2. (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 $1.5 million? (Increase or Decrease)
b. What if they are $4.5 million? (Increase or Decrease)