Matata, a japanese firm that manufactures automobile parts, was running at a loss in its offshore outlet in mexico due to the governmental and civil disruptions in the country. this, it withdrew its business outlets from mexico. at this opportunity, another japanese firm, lui corporation, entered into business in mexico. with this decision, lui corporation has made itself liable to

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $