A project currently generates sales of $18 million, variable costs equal 60% of sales, and fixed costs are $3.6 million. The firm's tax rate is 35%. Assume all sales and expenses are cash items.

a.What are the effects on cash flow, ifsales increase from $18 million to $19.8 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 70% of sales?(Input the amount as positive value. Enter your answer in dollars not in millions.)