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A project currently generates sales of $ 1 3 million, variable costs equal 5 0 % of sales, and fixed costs are $ 2 .

A project currently generates sales of $13 million, variable costs equal 50% of sales, and fixed costs are $2.6 million. The firm's tax rate is 21%. Assume all sales and expenses are cash items.
a. What are the effects on cash flow, if sales increase from $13 million to $14.3 million?
Note: Input the amount as positive value. Enter your answer in dollars not in millions.
b. What are the effects on cash flow, if variable costs increase to 55% of sales?
Note: Input the amount as positive value. Enter your answer in dollars not in millions.
\table[[a. Cash flow,,by],[b. Cash flow,,by]]
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