ANSWER FOR BOTH YEAR 1 AND YEAR 2 PLEASE

ANSWER ALSO FOR YEAR 2 NOT JUST YEAR 1

2 PART QUESTION

Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $3.9 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 $8.4 million this year and $6.4 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 $1.8 million each year. Kokomochi's gross profit margin for the Mini Mochi Munch is 39%, and its gross profit margin averages 22% 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.) Incremental Earnings Forecast Year 1 Sales of Mini Mochi Munch Other Sales $ Cost of Goods Sold $ $ Gross Profit Selling, General, and Admin. Expenses Depreciation $ EBIT $ Income tax at 35% $ Unlevered Net Income $ Enter any number in the edit fields and then click Check Answer. part remaining Clear All Check