A project currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. The firm's tax rate is 40%. Assume all sales and expenses are cash items.

a.What are the effects on cash flow, ifsales increase from $14 million to $15.4 million?(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 60% of sales?(Input the amount as positive value. Enter your answer in dollars not in millions.)