9 Exercise 3-13A (Static) Conducting sensitivity analysis using the equation method LO 3-5 33 pints Cobb Company currently produces and sells 9,000 units annually of a product that has a variable cost of $20 per unit and annual fixed costs of $195,000. The company currently earns a $228,000 annual profit. Assume that Cobb 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 $25,000 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 Cobb invests in the new production equipment. References 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 9 Exercise 3-13A (Static) Conducting sensitivity analysis using the equation method LO 3-5 33 ints Cobb Company currently produces and sells 9,000 units annually of a product that has a variable cost of $20 per unit and annual fixed costs of $195,000. The company currently earns a $228,000 annual profit. Assume that Cobb 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 $25,000 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 Cobb invests in the new production equipment. References Complete this question by entering your answers in the tabs below. Required A Required B Prepare a contribution margin income statement, assuming that Cobb invests in the new production equipment. COBB COMPANY Contribution margin Income Statement