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Question Help Kokomochilis considering the launch of an advertising campaign for its latest dessert product the Mini Machi Munch Kokomoch plans to spend 54.72 million

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Question Help Kokomochilis considering the launch of an advertising campaign for its latest dessert product the Mini Machi Munch Kokomoch plans to spend 54.72 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 $10.53 milion this year and 5853 million next year. In addition, the company expects that new consumers who try the Mini ochi Munch wil be more likely to try Kokomachis other products. As a result, sales of other products are expected to rise by $3.11 milion each year Kokomochi's gross profit margin for the Mini Moch Munch is 36%, and its gross profit margin wages 25%, for all other products. The company's marginal corporate tax rate is 33% both this year and next year. What are the incremental earnings associated with the advertising campaign? Note: Assume that the company has adequate positive income to take advantage of the tax benefits provided by any not losses associated with this campaign Calculate the incremental earings for your 1 below. (Round to three decimal places) Year 1 $ Incremental Earnings Forecast 5 million) Sales of Mini Mochi Munch Other Sales Cost of Goods Sold Gross Profit Seling. General, and Administrative Depreciation EBIT Income Tax at 30% Incremental Eamings 5 $ 5 $ 5 $ s 5

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