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Kokomochi is considenng the launch of an advertising campaign for its latest dessert product, the Mini Mochil Munch. Kokomochil plans to spend $3.8 million on
Kokomochi is considenng the launch of an advertising campaign for its latest dessert product, the Mini Mochil Munch. Kokomochil plans to spend $3.8 million on TV, radlo, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mochi Munch by $7.9 million this year and $5.9 million next year. In addition, the company expects that new consumers who try the Mai Mochi Munch wili be more likely to ty Kokomochi's other products. As a result, sales of other products ate expected to rise by $1.6million oach year. Kokomochis gross profit margin for the Mini Mochi Munch is 38%, and its gross probt margin awerages 25% for all other products. The company's marginat corporate tax fate is 21 . both this year and noxt year. What are the incremental eamings associaled with the advertising campaign
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