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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 $5.2 million on

Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend

$5.2

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

$9.1

million this year and

$7.1

million next year. In addition, the company expects that new consumers who try the Mini Mochi Munch will be more likely to try Kokomochi's other products. As a result, sales of other products are expected to rise by

$1.7

million each year.Kokomochi's gross profit margin for the Mini Mochi Munch is

32%,

and its gross profit margin averages

20%

for all other products. The company's marginal corporate tax rate is

21%

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.)

Incremental Earnings Forecast

Year 1

Year 2

Sales of Mini Mochi Munch

$

$

Other Sales

Cost of Goods Sold

Gross Profit

$

$

Selling, General, and Admin. Expenses

Depreciation

0

0

EBIT

$

$

Income tax at 21%

Unlevered Net Income

$

$

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