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= Question 4, P 9-5 (simila... HW Scoro: 59.72%, 4.78 of 8 points Save O Points: 0 of 1 Kokomochi is considering the launch of

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= Question 4, P 9-5 (simila... HW Scoro: 59.72%, 4.78 of 8 points Save O Points: 0 of 1 Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch Kokomochi plans to spend $6.1 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 $8.7 million this year and $6.7 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 $25 milion each year Kokomochi's gross profit margin for the Mini Mochi Munch is 35%, and its gross profit margin averages 23% for all other products The company's marginal corporate tax rate is 21% both this year and next year. What are the incremental earnings associated with the advertising campaign? Year 2 $ Complete the table below. (Round to the nearest dollar) Incremental Earnings Forecast Year 1 Sales of Mini Mochi Munch $ Other Sales Cost of Goods Sold Gross Profit fe Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch Kokomochi plans to spend $6 1 million on TV, radio, and print advertising this year for the campaign The ads are expected to boost sales of the Mini Moch Munch by $8.7 million this year and $6.7 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 $2.5 million och yoor Kokomochi's gross profit margin for the Mini Mochi Munch is 35%, and its gross profit margin averages 23% for all other products. The company's marginal corporate tax rate is 21% both this year and next year What are the incremental earnings associated with the advertising campaign? Year 1 Year 2 $ $ Incremental Earnings Forecast Sales of Mini Mochi Munch Other Sales Cost of Goods Sold Gross Profit Selling. General, and Admin Expenses Depreciation $ $ 0 $ $ EBIT Income tax at 21% $ $ Unlevered Net Income

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