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OF MOKOMOch is considering the launch of an advertising campaign for its latest dessert product, the Mini Moch Munch. Kokomochi plans to spend $592 million

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OF MOKOMOch is considering the launch of an advertising campaign for its latest dessert product, the Mini Moch Munch. Kokomochi plans to spend $592 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 $9.25 million this year and $7.25 million next year. In addition, the company expects that new consumers who try the Mini Moch Munch will be more likely to try Kokomoch's other products As a result, sales of other products are expected to me by 53 46 milion each year. Kokomochi's gross profit margin for the Mini Mochi Munch is 38%, and to gross profit margin averages 25 for all other products. The company's marginal corporate tax rate is 10% both this year and next year. What are the incremental earings associated with the advertising campaign? Note: Assume that the company has adequate positive income to take advantage of the tax benefes provided by any netloses Sted with this campaign Calculate the incremental earnings for your below (Round to three decimal places) Year 1 Incremental Earnings Forecast (5 milion) Sales of Mini Mochi Munch

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