You estimate that your cattle farm will generate $.20 million of profits on sales of $4 million under normal economic conditions and that the degree of operating leverage is 5. (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Enter your answers in millions rounded to 1 decimal place.)
a. What will profits be if sales turn out to be $3.2 million?
Profit will (increase/decrease) to $ million.
b. What if they are $4.8 million?
Profit will (increase/decrease) to $ million.