A project currently generates sales of $3 million, variable costs equal 30% of sales, and fixed costs are $0.6 million. The firms tax rate is 40%. Assume all sales and expenses are cash items.

a. What are the effects on cash flow, if sales increase from $3 million to $3.3 million? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash flow increases/decreases by _______

b. What are the effects on cash flow, if variable costs increase to 35% of sales? (Input the amount as positive value. Enter your answer in dollars not in millions.) Cash flow increases/decreases by ________