Kokomocht is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch Kokonoch plans to spend 53 74 million on TV, radio, and print advertising this year for the campaign. The ads are expected to boost sales of the Mel Mochi Munch by $11.33 milion this year and 59.33 million next year. In addition, the company expects that new consumers who try the Mini Mochi Munch will be more key to try Kokomoch's other products. As a result, sales of other products are expected to rise by $3.14 million each year Kokomochi's gross profit margin for the Mini Moch Munch is 30% and is gross profit margin averages 24% 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 Earings Forecast (8 million) Sales of Mini Mochi Munch Other Sales $ S $ $ Cost of Goods Sold Gross Profit Selling. General, and Administrative Depreciation EBIT Income Tax at 40% $ $ Next Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $3.74 million on TV, radio, and print D Income Tax at 40% Incremental Earnings $ Calculate the incremental earnings for year 2 below: (Round to three decimal places.) Year 2 Incremental Earnings Forecast (5 million) Next MacBook Pro possible Submit test Kokomochi is considering the touch of an advertising campaign for its latest dessert product, the Mini Mochi Munch Kokomoch plans to spend $3.76 million on TV, radio and pret GID $ $ $ Sales of Mini Mochi Munch Other Sales Cost of Goods Sold Gross Profit Selling, General and Administrative Depreciation $ $ Next MacBook Pro Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $3.74 million on TV CHILE Selling, General, and Administrative Depreciation EBIT $ $ Income Tax at 40% $ Incremental Eamnings $
