Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 Jordan Company currently produces and sells 8,100 units annually of a product that has a variable cost of $9 per unit and annual fixed costs of $366,400. The company currently earns a $71,000 annual profit. Assume that Jordan has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $7 per unit. The Investment would cause fixed costs to increase by $10,600 because of additional depreciation cost. Required 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 Jordan invests in the new production equipment. Complete this question by entering your answers in the tabs below. 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 Rinquired A Required B > Jordan Company currently produces and sells 8,100 units annually of a product that has a variable cost of $9 per unit and annual fixed costs of $366,400. The company currently earns a $71,000 annual profit. Assume that Jordan has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $7 per unit. The investment would cause fixed costs to increase by $10,600 because of additional depreciation cost. Required 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 Jordan invests in the new production equipment. Complete this question by entering your answers in the tabs below. Required A Required B Prepare a contribution margin income statement, assuming that Jordan invests in the new production equipment. JORDAN COMPANY Contribution margin income statement