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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 $5.3 million on

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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 $5.3 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 $9.2 million this year and $7 2 million next year. In addition, the company expects that new consumers who try the Mini Mocht Munch will be more likely to try Kokomochi's other products. As a result, sales of other products are expected to rise by $2.1 million each year. Kokomochi's gross profit margin for the Mini Mochi Munch is 32% and its gross profit margin averages 22% for all other products. The company's marginal corporate tax rate is 35% both this year and next year What are the incremental earnings associated with the advertising campaign? Complete the table below: (Round to the nearest dollar) Year 1 LA CA $ GA Incremental Earnings Forecast Sales of Mini Mochi Munch Other Sales Cost of Goods Sold Gross Profit Selling, General, and Admin Expenses Depreciation EBIT GA $ 0 S Income tax at 35% Unlevered Net Income 5

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