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A project currently generates sales of $6.6 million, variable costs equal to 32% of sales and fixed costs of $1.3 million. The firm's tax rate

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A project currently generates sales of $6.6 million, variable costs equal to 32% of sales and fixed costs of $1.3 million. The firm's tax rate is 35%. What are the effects of the following changes on after-tax profits and cash flows a. Sales increase from $6.6 million to $9.6 million What are the effects on after-tax profits and cash flows? (Round your answers to 3 decimal places. Enter your answers in millions of dollars.) After-tax profits Click to select) by $[ million After-tax cash flow (Click to select) v by $ million b. Variable costs increase to 38% of sales. What are the effects on after-tax profits and cash flows? (Round your answers to 3 decimal places. Enter your answers in millions of dollars.) After-tax profits (Click to select) v by s million After-tax cash flow (Click to select) by million

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