A project currently generates sales of $9million, variable costs equal 40% of sales, and fixed costs are $1.8 million. The firms tax rate is 30%. Assume all sales and expenses are cash items.

a. What are the effects on cash flow if sales increase from $9million to $9.9m? (Input the amount as positive value. Enter answer in dollars not millions)

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