Please answer both column is possible I will upvote, Thanks! Incremental Earnings ForecastSales of Mini Mochi MunchOther SalesCost of Goods SoldGross ProfitSelling, General, and Admin. ExpensesDepreciationEBITIncome tax at 35%Unlevered Net Income5559$S$69$$6969Year 10$$59$59EA6969Year 20 Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch.Kokomochi plans to spend $5.4 million on TV, radio, and print advertising this year for the campaign. The ads are expected toboost sales of the Mini Mochi Munch by $8.1 million this year and $6.1 million next year. In addition, the company expectsthat new consumers who try the Mini Mochi Munch will be more likely to try Kokomochi's other products. As a result, sales ofother products are expected to rise by $1.7 million each year.Kokomochi's gross profit margin for the Mini Mochi Munch is 39%, and its gross profit margin averages 24% for all otherproducts. The company's marginal corporate tax rate is 35% both this year and next year. What are the incremental earningsassociated with the advertising campaign?CESSORComplete the table below: (Round to the nearest dollar)Incremental Eamings ForecastYear 2Sales of Mini Mochi MunchOther SalesCost of Goods SoldLA LA S$$Year 1SS10S

Incremental earnings give a sign of an organization's development rate in view of its investment…

Answered: Incremental Earnings Forecast Sales of…

Incremental Earnings Forecast Sales of Mini Mochi Munch Other Sales Cost of Goods Sold Gross Profit Selling, General, and Admin. Expenses $ $ EA $ 69 $ EA Year 1 $ $ $ EA 69 SA Year 2

Managerial Economics: Applications, Strategies and Tactics (MindTap Course List)

14th Edition

ISBN:9781305506381

Author:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Publisher:James R. McGuigan, R. Charles Moyer, Frederick H.deB. Harris

Chapter2: Fundamental Economic Concepts

Section: Chapter Questions

Problem 5E

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Question

Please answer both column is possible I will upvote, Thanks!

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%
Unlevered Net Income
55
59
$
S
$
69
$
$
69
69
Year 1
0
$
$
59
$
59
EA
69
69
Year 2
0

Kokomochi is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch.
Kokomochi plans to spend $5.4 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 $8.1 million this year and $6.1 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 $1.7 million each year.
Kokomochi's gross profit margin for the Mini Mochi Munch is 39%, 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?
CESSOR
Complete the table below: (Round to the nearest dollar)
Incremental Eamings Forecast
Year 2
Sales of Mini Mochi Munch
Other Sales
Cost of Goods Sold
LA LA S
$
$
Year 1
S
S
10
S

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