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A project currently generates sales of $2 million, variable costs equal 50% of sales, and fixed costs are $0.4 million, The firm's tax rate is

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A project currently generates sales of $2 million, variable costs equal 50% of sales, and fixed costs are $0.4 million, The firm's tax rate is 21\%. Assume all sales and expenses are cash items. a. What are the effects on cash flow, if sales increase from $2 million to $2.2 million? Note: 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? Note: Input the amount as positive value. Enter your answer In dollars not in millions

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