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please complete the graph. income tax at 35% is not 0 Kokomochi is considering the launch of an advertising campaign for its latest dessert product,

please complete the graph. income tax at 35% is not 0 image text in transcribed
Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $4 23 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 $8.38 million this year and $6.38 million next year. In addition, the company expects that new consumers who try the Mini Moch Munch wil be more likely to try Kokomochi's other products. As a result, sales of other products are expected to rise by $2.75 milion each year. Kokomoch's gross profit margin for the Mini Mochi Munch is 33%, 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 eamings 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 $ 8.380 $ 2.750 7.677 S 3.453 Incremental Earrings Forecast (5 million) Sales of Mini Mochi Munch Other Sales Cost of Goods Sold Gross Profit Seling. General, and Administrative Depreciation EDIT Income Tax at 35% Incremental Larings 5 $ 4230 $ $ 0.777 $ 0.777 Enter any number in the edit fields and then click Check

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