Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $$4\mathrm{.}55$ 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 $$8\mathrm{.}22$ million this year and $$6\mathrm{.}22$ 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\mathrm{.}54$ million each year.

Kokomochi's gross profit margin for the Mini Mochi Munch is $36\%,$ and its gross profit margin averages $25\%$ for all other products. The company's marginal corporate tax rate is $38\%$ 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 $38\%$

Incremental Earnings