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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 $6.3 million on

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

$6.3

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

$8.2

million this year and

$6.2

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

$2.2

million each year.

Kokomochi's gross profit margin for the Mini Mochi Munch is

32%,

and its gross profit margin averages

21%

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

30%

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

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