Business, 08.04.2020 01:50 krystenlitten

A brewer is launching a new product: brewed ginger ale with a low alcohol content. The brewer 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 for the new ginger ale is 40%, the gross profit 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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A brewer is launching a new product: brewed ginger ale with a low alcohol content. The brewer plans...

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