Question: can someone help me with this practice problem there are two parts Kokomochi is considering the launch of an advertising campaign for its latest dessert
Kokomochi is considering the launch of an advertising campaign for its latest dessert product the Mini Mochi Munch Kokomoche plans to spend 557 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 4 million this year and $8.4 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 $2.2 million each year Kokomochi's gross profit margin for the Mini Mocht Munch is 33% and its gross profit margin averages 20% for all other products. The company's marginal corporate tax rate is 35% both this year and next year What are the incrementalarnings associated with the advertising campaign? Complete the table below (Round to the nearest dollar) Year 1 $ $ $ Incremental Earnings Forecast Sales of Mini Mochi Munch Other Sales Cost of Goods Sold Gross Profit Selling General, and Admin Expenses Depreciation EBIT $ $ $ Income tax at 35% $ Unlovored Not Income
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