A project currently generates sales of $19 million, variable costs equal 40% of sales, and fixed costs are $3.8 million. The firms tax rate is 35%. Assume all sales and expenses are cash items.

a.	What are the effects on cash flow, ifsales increase from $19 million to $20.9 million?(Input the amount as positive value.Enter your answer in dollars not in millions.)

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b.	What are the effects on cash flow, if variable costs increase to 50% of sales?(Input the amount as positive value.Enter your answer in dollars not in millions.)

Cash flow

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