Round to 3 Decimal Places

Deirdre Davis 10/24/20 1:02 PM Homework: M3: Chapter 8 Homework Save Score: 0 of 1 pt 1 of 123 complete > HW Scare: 25%, 3 of 12 pts P8-2 (similar to) Question Help Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mochi Mench Kokomochi plans to spend $3.91 milion on TV radio, and print advertising this year for the campaign. The ads are expected to boost sales of the Mini Mochi Mundhy by $10.48 million this year and $8.48 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 au sales of other products are expected to rise by $3.31 million each year. Kokomochi's gross profit margin for the Mini Machi Munch is 35%, and its gross profit margin averages 25 for other products. The company's marginal corporate tax rate is 40% both this year and next year. What are the incremental earnings associated with the advertising campaign Note: Assume that the company has adequate positive income to take advantage of the tax benefits provided by any ner losses associated with this campaign Year 1 Incremental Earnings Forecast ($ million) Sales of Mini Mochi Munch $ Other Sales $ $ S Cost of Goods Sold Gross Profit Selling, General, and Administrative Depreciation S $ EBIT S Income Tax at 40% S Incremental Earnings S Enter any number in the edit fields and then click Check Answer 1 part remaining Clear All Check