Mover Company has developed the following standards for one of its products: Direct materials: 7.5 pounds × $8 per pound Direct labor: 2 hours × $12 per hour The following activity occurred during March: Materials purchased: 5,000 pounds costing $42,500 Materials used: 3,600 pounds Units produced: 500 units Direct labor: 1,150 hours at $11.80/hour The company records materials price variances at the time of purchase. The variable standard cost per unit for materials and labor is:

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 $