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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 $5.9 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 $5.9 million on TV, radio, and print advertising this year for the campaign. The ad are expected to boost sales of the Mini Mochi Munch by $7.5 million this year and $5.5 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 39%, and its gross profit margin averages 24% 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? 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 S Gross Profit $ $ Selling. General, and Admin Expenses Depreciation 0 EBIT $ Income tax at 35% $ $ Unlevered Net Income

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