Question: Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 35 Campbell Company currently produces and sells 8,000 units annually of o product that

 Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO
35 Campbell Company currently produces and sells 8,000 units annually of o

Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 35 Campbell Company currently produces and sells 8,000 units annually of o product that has a variable cost of $15 per unit and annual fbeed costs of $276.000. The company currently earns a $76,000 annual profit. Assume that Campbell has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $13 per unit. The investment would cause fixed costs to increase by $10,600 because of additional depreciation cost Required a. Use the equabon method to determine the sales price per unit under existing conditions (current equipment is usied) b. Prepare a contribution margin income statement, assuming that Campbell invests in the new production equipment. Complete this question by entering your answers in the tabs below. Use the equation method to determine the sales prion per unit under exhting conditions (current equerment is used). Use the equation method to determine the sales price per unit under existing conditions (current equiprientis useu) b. Prepare a contribution margin income statement, assuming that Campbell invests in the new production equipment. Complete this question by entering your answers in the tabs below. Prepare a contribution margin income statement, assuming that Campbell invests in the new production equipment

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