Komochi is considering the launch advertising campaign for its latest dessert product, the Mini Mochi Munch....

Komochi is considering the launch advertising campaign for its latest dessert product, the Mini Mochi Munch. Komochi plans to spend $6.3 million on TV, radio and print adverising this tear for campaign.. The ads are supposed to boost sales of the Mini,Mochi, Munch by $10.3 million this year and $8.3 million next year. In addition, the company expects that new consumers who try the products will more than likely try Komochi's other products. As a result, sales of other products are expected to rise by $1.7 million each year. Komochi's gross profit margins for the MINi, MOchi Munch is 33%, and its gross profit margins average 21% 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?

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SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

jeff jeffy answered 1 year ago

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