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help & please show formulas Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch Kokomochi plans
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Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch Kokomochi plans to spend 55,34 million on TV, radio, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mochi Munch by $8.94 million this year and $6.94 million next year in addition, the company expects that now consumers who try the Mini Moch Munch will be more likely to try Kokomodis other products. As a Ost, sales of other products are expected to rise by 52 56 million each year, Kokomochis gross profit margin for the Mini Mochi Munch is 33%, and its gross profit margin averages 25 for all other products. The company's marginal corporate tax rate is 30% both this year and next year What are the incremental carrings associated with the advertising campaign? Note: Assume that the company has adequate positive income to take advantage of the tax benefits provided by any net losses associated with this campaign Year 1 Incremental Earnings Forecast ($ million) Sales of Mini Mochi Munch $ Other Sales $ Cost of Goods Sold $ Gross Profit S $ $ Selling, General, and Administrative Depreciation $ EBIT $ $ Income Tay at 20% Depreciation $ $ EBIT Income Tax at 30% $ Incremental Earnings $ Step by Step Solution
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