28 Jun uestion A business currently generates $7 million
Question
A business currently generates $7 million in sales. the variable costs equal 60% of sales and $1.4 million are the fixed costs. 40% is the firms tax rate.
a.If sales increase from $7 million to $7.7 million what is the effects on the cash flow?
b. If the variable costs increase to 65% of sales what is the effects on the cash flow?
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