What are the effects of the given changes

Reference no: EM132056952

Question: A project currently generates sales of $10 million, variable costs equal to 50 percent of sales, and fixed costs of $2 million. The firm's tax rate is 35 percent. What are the effects of the following changes on after-tax profits and cash flows? Sales increase from $10 million to $11 million. Variable costs increase to 60 percent of sales.

Reference no: EM132056952

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