A project currently generates sales of $18 million, variable costs equal 60% of sales, and fixed costs are $3.6 million. The firms tax rate is 21%. Assume all sales and expenses are cash items.

What are the effects on cash flow, if sales increase from $18 million to $19.8 million?

Note: Input the amount as positive value. Enter your answer in dollars not in millions.

What are the effects on cash flow, if variable costs increase to 70% of sales?

Note: Input the amount as positive value. Enter your answer in dollars not in millions.