Question
is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $4.6 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 $9.4 million this year and $7.4 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 $2.3 million each year. What are the incremental earnings associated with the advertising campaign?
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Answer to a math question is considering the launch of an advertising campaign for its latest dessert product, the Mini Mochi Munch. Kokomochi plans to spend $4.6 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 $9.4 million this year and $7.4 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 $2.3 million each year. What are the incremental earnings associated with the advertising campaign?
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4.5102 Answers
**Year 1:**
Incremental sales from Mini Mochi Munch: $9.4 million
Incremental sales from other products: $2.3 million
Advertising campaign costs: $4.6 million
Incremental earnings Year 1 =(9.4 + 2.3) - 4.6 =
**Year 2:**
Incremental sales from Mini Mochi Munch: $7.4 million
Incremental sales from other products: $2.3 million
Incremental earnings Year 2 =7.4 + 2.3 =
**Total incremental earnings for the two years:**
7.1 million (Year 1) +
**Answer: The total incremental earnings over the two-year period are $16.8 million.**
Incremental sales from Mini Mochi Munch: $9.4 million
Incremental sales from other products: $2.3 million
Advertising campaign costs: $4.6 million
Incremental earnings Year 1 =
**Year 2:**
Incremental sales from Mini Mochi Munch: $7.4 million
Incremental sales from other products: $2.3 million
Incremental earnings Year 2 =
**Total incremental earnings for the two years:**
**Answer: The total incremental earnings over the two-year period are $16.8 million.**
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