Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $$5\mathrm{.}14$ 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 $$10\mathrm{.}89$ million this year and $$8\mathrm{.}89$ 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 $$3\mathrm{.}28$ million each year.

Kokomochi's gross profit margin for the Mini Mochi Munch is $34\%,$ and its gross profit margin averages $25\%$ for all other products. The company's marginal corporate tax rate is $40\%$ both this year

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

Note: Assume that the company has adequate positive income to take advantage of the tax benefits provided by any net losses associated with this campaign.

Calculate the incremental earnings for year $1$ below: $($Round to three decimal places.$)$

Year $1$

Incremental Earnings Forecast $($$ million$)$

Sales of Mini Mochi Munch

$

Other Sales

Cost of Goods Sold

Gross Profit

Selling, General, and Administrative

Depreciation

EBIT

$

Income Tax at $40\%$

Incremental Earnings