Excercises Chapter Three Sam . 4. Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 3 Sed Campbell Company currently produces and sells 6,800 units annually of a product that has a variable cost of $10 per unit and annual fixed costs of $245,400. The company currently earns a $81,000 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 $8 per unit. The investment would caute fixed costs to increase by $9.200 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 Campbell invests in the new production equipment. Pin Complete this question by entering your answers in the tabs below. lo Required A Required use the equation method to determine the sales price per unit under existing conditions (current equipment is used). e pro Der Required 3 > cerches Chapter Three 4. points Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 Campbell Company currently produces and sells 6,800 units annually of a product that has a variable cost of $10 per unit and annual fwed costs of $245,400. The company currently earns a $81,000 annual profit. Assume that Campbell has the opportunity to invest in new tabor saving production equipment that will enable the company to reduce variable costs to 58 per unit. The investment would cause fixed costs to increase by $9.200 because of additional depreciation cost. Required 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 Campbell invests in the new production equipment Complete this question by entering your answers in the tabs below. Roured Prepare a contribution margin income statement, assuming that Campbell invests in the new production equipment CAMPBELL COMPANY Cutii mari income statement