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A project currently generates sales of $10.5 million, variable costs equal to 40% of sales, and fixed costs of $2.2 million. The firm's tax rate

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A project currently generates sales of $10.5 million, variable costs equal to 40% of sales, and fixed costs of $2.2 million. The firm's tax rate is 35%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $10.5 million to $12 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit (Click to select) by Cash flow (Click to select) by $ million million. b. What are the effects on the after-tax profits and cash flow, if variable costs increase to 60% of sales. (Input all amounts as positive values. Do not round Intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit (Click to select) by $ Cash flow [Click to select) by $ million. million

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