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A project currently generates sales of $ 6 million, variable costs equal 4 0 % of sales, and fixed costs are $ 1 . 2

A project currently generates sales of $6 million, variable costs equal 40% of sales, and fixed costs are $1.2 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 $6 million to $6.6 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 55% of sales?
Note: Input the amount as positive value. Enter your answer in dollars not in millions.

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