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 30%. Assume all sales and expenses are cash item.

1. What are the effects on cash flow, if sales increase from $6 million to $6.6 million? Cash flow_____by______?
2. What are the effects of cash flow, if variable cost increase to 55% of sales? Cash flow_____by______?