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Business, 09.03.2021 01:10 thawkins79

Kokomochi is considering the launch of an advertising campaign for its latest dessert​ product, the Mini Mochi Munch. Kokomochi plans to spend 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 million this year and 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 million each year. ​Kokomochi's gross profit margin for the Mini Mochi Munch is ​, and its gross profit margin averages for all other products. The​ company's marginal corporate tax rate is both this year and next year. What are the incremental earnings associated with the advertising​ campaign?

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