Lauren's salary decreases from $40,000 to $30,000. She decides to reduce the number of outfits she purchases each year from 20 20 to 19 19 . Use the midpoint method to calculate the income elasticity of demand for new outfits. Round your answer to two decimal places.

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 $