Question
PLEASE HELP WILL UPVOTE EZ PZ A project currently generates sales of $8 million, variable costs equal 40% of sales, and fixed costs are $1.6
PLEASE HELP WILL UPVOTE EZ PZ
A project currently generates sales of $8 million, variable costs equal 40% of sales, and fixed costs are $1.6 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 $8 million to $8.8 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 50% of sales?
Note: Input the amount as positive value. Enter your answer in dollars not in millions.
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