A brewer is launching a newproduct; brewed ginger ale with a low alcohol content. The brewer plans to spend $5million promoting this product thisyear, which is expected to expand its sales of this product to $12million this year and $8million next year. They do expect there will be loss of sales of $3million this year and next year in their other products as customers switch to drinking the new ginger ale. The gross profit margin for the new ginger ale is40%, the gross profit margin of all of thebrewer's other products is30%, and thebrewer's marginal corporate tax rate is35%. What are incremental earnings arising from the promotional campaign thisyear?

A.

$1.56 million

B.

$4.80 million

C.

$0.84 million

D.

$1.40 million