4 Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 3 points Zachary Company currently produces and sells 8,400 units annually of a product that has a variable cost of $18 per unit and annual fixed costs of $358,200. The company currently earns a $87,000 annual profit. Assume that Zachary has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $16 per unit. The investment would cause fixed costs to increase by $9,800 because of additional depreciation cost. Required eBook a. Use the equation method to determine the sales price per unit under existing conditions (current equipment is used). b. Prepare a contribution margin income statement, assuming that Zachary invests in the new production equipment. Print Complete this question by entering your answers in the tabs below. References Required A Required B Use the equation method to determine the sales price per unit under existing conditions (current equipment is used). Sales price per unit