A manufacturer reports the information below for three recent years. Year 1 Year 2 Year 3 Variable costing income $ 132,500 $ 138,400 $ 137,700 Beginning finished goods inventory (units) 0 1,950 1,450 Ending finished goods inventory (units) 1,950 1,450 1,550 Fixed manufacturing overhead per unit $ 2.20 $ 2.20 $ 2.20 Compute income for each of the three years usin

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 $