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Please be as detailed and accurate as possible. My past question was answered with a wrong answer. Please be accurate. Thank you. Kokomochi is considering

image text in transcribedPlease be as detailed and accurate as possible. My past question was answered with a wrong answer. Please be accurate. Thank you.

Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $5.8 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 $8.2 million this year and $6.2 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 $1.7 million each year. Kokomochi's gross profit margin for the Mini Mochi Munch is 38%, and its gross profit margin averages 25% 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 Year 2 Sales of Mini Mochi Munch Other Sales Cost of Goods Sold $ 8,200,000 $ $ 1,700,000 $ $ (6,359,000) $ $ 3,541,000 $ $ (5,800,000) $ Gross Profit Selling, General, and Admin. Expenses Depreciation EBIT 0 0 $ (2,259,000) $ Income tax at 35% $ 790,650 $ Unlevered Net Income $ (1,468,350) $

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