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Kombucha is considering the launch of an advertising campaign for its latest dessert product, the Mini Mocha Munch. Kombucha plans to spend $3.97million on TV,

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Kombucha is considering the launch of an advertising campaign for its latest dessert product, the Mini Mocha Munch. Kombucha plans to spend $3.97million on TV, ratio, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mocha Munch by $10.73 million this year and $8.73 million next year to addition, the company expected that new consumers who try the Mini Mocha Munch will be more likely to try Kombucha's other products. As a result, sales of other products are expected to rise by $3.11 million each year. Kombucha's gross profit margin for the Mini Mocha Munch is 35%, and its gross profit margin averages 24% for all other products. The company's marginal corporate tax rate is 33% both this year and next year. What are the incremental earnings associated with the advertising campaign? Calculate the incremental earnings to year 1 below: (Round to three decimal places.)

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