You are a rookie on traffic patrol. you watch as a young black man drives past you in a new silver porsche. you estimate the car’s value at around $50,000, yet the neigh- borhood you are patrolling in is characterized by low-income housing, cheap apart- ments, and tiny houses on the lowest end of the housing spectrum. you follow him and observe that he forgets to signal when he changes lanes. ordinarily you wouldn’t waste your time on something so minor.

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 $