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A brewer is launching a new product brewed ginger ale with a low alcohol content. The brewer plans to spend $3 million promoting this product

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A brewer is launching a new product brewed ginger ale with a low alcohol content. The brewer plans to spend $3 million promoting this product this year, which is expected to expand its sales of this product to 310 million this year and $8 million next year. They do exped there will be loss of sales of $1 million this year and need year in their other products as customers switch to drinking the new ginger ale. The gross profit margin for the new ginger ate is 40%, the 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? 5 06 27 28 29 30 A $1.26 million OB $4.00 million OC. $211 million OD. $2.34 million

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