Cathy's Cake Shop creates custom cakes to the residents of Ottawa, Canada. Cathy, the owner of the business, wants to better understand some of the costs of her business, and has provided the below income statement for the year. Sales (4000 cakes) 175,000 Variable costs to produce 125,000 Contribution Margin 50,000 Rent and Utilities for the shop 25,000 Operating Income 25,000 O Income Tax Expense (106 ) 2500 Net Income 22,500 Required 14 Cathy wants to know the following about her business: 15 A) What is her break-even point in cakes (units) sold? 16 B) What is the Cake Shop's Margin of Safey in dollars? C) Cathywants to run a special promotion to sell a new specialty red velvet cake she plans to sell. She wants to discount all cakes sold by 8%. Variable costs would increase by $3.5 per unit, but sales would increase by 18%. The advertising for this would cost $8000. Should Cathy run this promotion? Use incremental analysis to determine the incremental income/loss