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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 $5.4 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 $5.4 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 $10.2 million this year and $8.2 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 $1.6 million each year. Kokomochi's gross profit margin for the Mini Mochi Munch is 35%, 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? Year 2 8200000 1600000 Complete the table below: (Round to the nearest dollar.) Incremental Earnings Forecast Year 1 Sales of Mini Mochi Munch 10200000 $ Other Sales 1600000 Cost of Goods Sold 7894000 Gross Profit 3906000 $ Selling, General, and Admin. Expenses 5400000 Depreciation EBIT $ 6594000 $ 3206000 0 0 0 $ Income tax at 21% Unlevered Net Income $ $

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