Problem $10-5$ Sensitivity Analysis $($LO$3)$

A project currently generates sales of $$12$ million, varlable costs equal $40\%$ of sales, and fixed costs are $$2\mathrm{.}4$ million. The firm's tax rate Is $21\%.$ Assume all sales and expenses are cash items.

a$.$ What are the effects on cash flow, if sales increase from $$12$ million to $$13\mathrm{.}2$ million?

Note: Input the amount as positive value. Enter your answer In dollars not In millions.

b$.$ 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.

$\backslash$table$[[$a$.$ Cash flow,,by$],[$b$.$ Cash flow,,by$]]$