A project currently generates sales of $ 9. 8 million , variable costs equal to 39% of sales , and fixed costs of $ 1. 3 million . The firm’s tax
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A project currently generates sales of $ 9. 8 million , variable costs equal to 39% of sales , and fixed costs of$ 1. 3 million . The firm’s tax rate is 35%/6 . What are the effects of the following changes on after – tax profits andcash flows ?"a .Sales increase from 59. 8 million to $1 1 . 8 million . What are the effects on after – tax profits and cashflows ? ( Round your answers to 3 decimal places . Enter your answers in millions of dollars . )After- tax profits increase+ | 0 by $0. 52 million .After- tax cash flow| increase*$| 0 by 50.52million .6. Variable costs increase to $9%/ of sales . What are the effects on after- tax profits and cashflows ? ( Round your answers to 3 decimal places . Enter your answers in millions of dollars . )After- tax profits| decrease*$ | 0 by$million .After- tax cash flow | decrease+| 0 by 50. 98million .