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A project currently generates sales of $11 million, variable costs equal 50% of sales, and fixed costs are $2.2 million. The firm's tax rate is
A project currently generates sales of $11 million, variable costs equal 50% of sales, and fixed costs are $2.2 million. The firm's tax rate is 30%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $11 million to $12.1 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash flow increases by $ 385,000 b. What are the effects on cash flow, if variable costs increase to 55% of sales? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash flow decreases by
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