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Kokomochi is considering the iaunch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $3. 04 milion

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Kokomochi is considering the iaunch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $3. 04 milion on TV, radio, and print advertising this year for the campaygn. The ads ate expected to boost sales of the Mini Mochi Munch by $11.06 million this year and $9.06 milion next yeat. In addition, the company expects that new consumers who try the Mri Moch Munch will be more likely to try Kokomochi's other products. As a resulit sales of other products are expected to rise by $3,68 milion each year Kokomochi's gross profit matgin for the Mini Mochi Munch is 34%, 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 incrementai earnings associated with the advertising campaign? Note. Assume that the company has adequate positive income to take adivantage of the fax bonofits provided by any net losses associated with this campaign Calculate the incremental earnings for year 1 below. (Round to three decimal places)

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