xercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 achary Company currently produces and sells 6,700 units annually of a product that has a variable cost of $6 per unt and annual xed costs of $258,000. The company currently earns a $77,000 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 $4 per unit. The Investment would cause fixed costs to increase by $9,800 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 Zachary 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). per unit Required 8 > 4 Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 Zachary Company currently produces and sells 6700 units annually of a product that has a variable cost of $6 per unit and annual fixed costs of $258,000. The company currently earns a $77,000 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 $1 per unit. The investment would cause fixed costs to increase by $9,800 because of additional depreciation cost. Required a. Use the equation method to determine the sales price per unft under extsting conditions (current equipment is used). b. Prepare a contribution margin income statement, assuming that Zachary invests in the new production equipment eBook Print Complete this question by entering your answers in the tabs below. References Required A Required B Prepare a contribution margin income statement assuming that Zachary invests in the new production equipment. ZACHARY COMPANY Contribution margin Income statement