A project currently generates sales of $ 16 million, variable costs equal 50% of sales, and fixed costs are 3.2 million. The firms tax rate is 40%. Assume all sales and expenses are cash items.

a. What are the effects on cash flow, if sales increase from $16 million to 17.6 million? Put amount in positive value. Enter answer in dollars, not in millions

Cash flow ________ by___________

b. What are the effects on cash flow, if variable costs increases to 60% of sales? Put amount as positive value. Enter answer in dollars, and not in millions