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Joseph's Jacket Emporium Inc. (JE) sells one product: high quality jackets, JE's contribution style income statement for the last fiscal year is below. Sales (1750

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Joseph's Jacket Emporium Inc. (JE) sells one product: high quality jackets, JE's contribution style income statement for the last fiscal year is below. Sales (1750 units) Variable Costs Contribution Margin Fixed Costs Operating Income Income Tax Expense (25%) Net Income 500,000 300,000 200,000 140,000 60,000 15000 45,000 Required: a) What is TJE's break-even point in units? (2 marks) b) What is JE's Margin of Safety in dollars? (1 mark) - c) The new VP marketing has suggested a special promotion be run where units are sold at a discount of 8%. The promotion is expected to increase the units sold by 20%, but variable costs would increase by $2 per unit due to special packaging. The advertising associated with this campaign would cost $10,000. Should this promotion be run? Use incremental analysis

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