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Kokomochi is considering the launch of an advertsing campaign for its latest dessert product, the Mini Mochi Munch. Koikomochi plans to spend $4.43 mallion on

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Kokomochi is considering the launch of an advertsing campaign for its latest dessert product, the Mini Mochi Munch. Koikomochi plans to spend $4.43 mallion on TV, radia, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mochi Munch by 511.87 milton this year and $967 milion next year, In addition, the company expects that new consumers who try the Mini Mochi Munch will be mare likely to try Kokomoch's other products. As a tesult, sales of other peoducts are expected to rise by $3.13 milion each year. Kokomochi's gross proft margin for the Mini Mochi Munch is 35%, and its gross profit margin averages 24% for al other peoducts. The company' marginal corporate tax rate is 40% both Eis year and noxt year. What are the incremental earnings associsted wat the advertising campaign? Note: Assume that the company has adequate positive income to take advantage of the lax benefis provided by any net losses associated with this campaign. Calculate the incremental eamings for year 1 below: (Round to three decimal places)

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