Question: i need help completing this for year one and two Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the
Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $5.8 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 Mochi Munch is 33%, and its gross profit margin averages 24% 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 Year 2 Sales of Mini Mochi Munch 10400000 Other Sales %24 2200000 $ Cost of Goods Sold 8350000$ Gross Profit 4250000 $ Selling, General, and Admin. Expenses 5800000 $ Depreciation EBIT %24 2$ Income tax at 35% 24 Cor Unlevered Net Income Enter any number in the edit fields and then continue to the next question. Save for Later
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