What are the effects on the after-tax profits and cash flow

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A project currently generates sales of $11.4 million, variable costs equal to 50% of sales, and fixed costs of $3.4 million. The firm’s tax rate is 30%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $11.4 million to $12.8 million. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit by $ million. Cash flow by $ million. b. What are the effects on the after-tax profits and cash flow, if variable costs increase to 70% of sales. (Input all amounts as positive values. Do not round intermediate calculations. Enter your answers in millions rounded to 3 decimal places.) After-tax profit by $ million. Cash flow by $ million. References

Reference no: EM13922187

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What are the effects on the after-tax profits and cash flow : A project currently generates sales of $11.4 million, variable costs equal to 50% of sales, and fixed costs of $3.4 million. The firm’s tax rate is 30%. a. What are the effects on the after-tax profits and cash flow, if sales increase from $11.4 mill..

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