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please check my work 8. Question Help | Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi
please check my work
8.
Question Help | Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch Kokomochi plans to spend $5.6 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 $10.2 million this year and $8.2 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 Kokomo his gross profit margin for the Mini Mochi Munch is 38%, and its gross profit margin averages 20% 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.) Year 1 Year 2 Incremental Earnings Forecast Sales of Mini Mochi Munch Other Sales Cost of Goods Sold Gross Profit 10200,000 8200,000 S 1,700,000 S 1,700,000 si -7.684.000| S| -6,444,000 s4216,000 3,456 000 s5600 0001 Seling. General, and Admin Expenses s Depreciation EBT income tax at 35% Unlevered Net Income S 1,384,000 3,456.000 484.400 -1.209.6 S-899,600 2 246 400
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