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

$6.1

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

$8.1

million this year and

$6.1

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

35%

both this year and next year. What are the incremental earnings associated with the advertising campaign?

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Part 1

Complete the table below:(Round to the nearest dollar.)

Incremental Earnings Forecast	Year 1
Sales of Mini Mochi Munch	$
Other Sales	$
Cost of Goods Sold	$
Gross Profit	$
Selling, General, and Admin. Expenses	$
Depreciation		0
EBIT	$
Income tax at 35%	$
Unlevered Net Income