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A brewer is launching a new product brewed ginger ale with a low akcotrol content: The brewer plans to spend $4 milion promoting this product

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A brewer is launching a new product brewed ginger ale with a low akcotrol content: The brewer plans to spend $4 milion promoting this product this year, which is expected to expand its sales of this product to $10 milion this year and $8 million next year They do expect there will be loss of sales of $1 milhon this year and next yoar in their othet products as customers switch to drinking the new ginger ale. The gross profit margin for the new ginger ale is 40% gross profit margin of all of the brewer's other products is 30%, and the brewer's marginal corporate tax rate is 35% What are incremental earnings arising from the promotional campaign this year? A. $1.95 million B. $4.68 million C. $8.00 million D. $5.28 milion E. $4.29 million

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