Business, 23.09.2020 19:01, kimjooin02

Brewtus is launching a new product: brewed ginger ale with a low alcohol content. Brewtus plans to spend $4 million promoting this product this year, which is expected to expand the sales of this product to $11 million this year and $8 million next year. They do expect there will be loss of sales of $1 million this year and next year in their other products as customers switch to drinking the new ginger ale. The gross profit margin for the new ginger ale is 40%, the gross profit margin of all of the brewer's other products is 30%, and the brewer's marginal corporate tax rate is 35%. What are incremental earnings arising from the promotional campaign this year

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Brewtus is launching a new product: brewed ginger ale with a low alcohol content. Brewtus plans to s...