Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $ 4.4 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 $ 7.9 million this year and $ 5.9 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 $ 2.1 million each year. Kokomochi's gross profit margin for the Mini Mochi Munch is 39 %, and its gross profit margin averages 21 % 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 $ Gross Profit $ Selling, General, and Admin. Expenses $ Depreciation 0 EBIT $ Income tax at 35% $ Unlevered Net Income $ Enter any number in the edit fields and then click Check Answer.

v

Homework: Chapter 9 Homework 2020 Save Score: 0 of 1 pt 3 of 11 (9 complete) HW Score: 79.39%, 8.73 of 11 p P 9-5 (similar to) Question Help Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $4.4 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 $7.9 million this year and $5.9 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 $2.1 million each year. Kokomochi's gross profit margin for the Mini Mochi Munch is 39%, and its gross profit margin averages 21% 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 Gross Profit Selling, General, and Admin. Expenses Depreciation EBIT Income tax at 35% Unlevered Net Income Enter any number in the edit fields and then click Check Answer. part remaining Clear All Check