Kokomochi is considering the launch of an advertising campaign for its latest dessert$$ product, the Mini Mochi Munch. Kokomochi plans to spend $ $5\mathrm{.}2$$$5\mathrm{.}2$ million on$$ TV$,$ radio, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mochi Munch by $ $9\mathrm{.}7$$$9\mathrm{.}7$ million this year and $ $7\mathrm{.}7$$$7\mathrm{.}7$ million next year. In$$ 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\mathrm{.}7$$$1\mathrm{.}7$ million each year.

$$Kokomochi$\text{'}$s gross profit margin for the Mini Mochi Munch is $35\%35\%,$ and its gross profit margin averages $22\%22\%$ for all other products. The$$ company's marginal corporate tax rate is $21\%21\%$ both this year and next year. What are the incremental earnings associated with the advertising$$ campaign?

Question content area bottom

Part $1$

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

$

$