A project currently generates sales of $20 million, variable costs equal 50% of sales, and fixed costs are $4.0 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 $20 million to $22.0 million?(Input the amount as positive value. Enter your answer in dollars not in millions.)

Cash flow:__________by__________

b.What are the effects on cash flow, if variable costs increase to 55% of sales?(Input the amount as positive value. Enter your answer in dollars not in millions.)

Cash flow:__________by___________