kokomochi is considering the launch of an advertising campaign for its latest dessert product, the mini mochi munch. Kokomochi plans to spend five 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 $9 million this year and $7 million next year. In addition, the company expects that new consumers who try the Mini Mochi Munch eill be more likely to try kokomochis other products. As a result, sales of other products are expected to rise by 2 million each year. Kokomochis gross profit margin for the mini mochi munch is 35%, and it's gross profit margin averages 25% for all other products. The companies marginal corporate tax rate is 21% both this year and next year. What are the incremental earnings associated with the advertising campaign?
sales of mini mochi munch (yr1) & (yr2)
other sales (yr1) & (yr2)
cost of goods sold (yr1) & (yr2)
Gross profit (YR 1) & (yr2)
selling, general, and admin. Expenses (yr1)&(yr2)
depreciation (yr1)&(yr2)
EBT. (yr1) & (yr2)
income tax at 21% (yr1) & (yr2)
unievered net income (yr1) & (yr2)
