Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 Adams Company currently produces and sells 6,400 units annually of a product that has a variable cost of $7 per unit and annual fixed costs of $280,400. The company currently earns a $78,000 annual profit . Assume that Adams has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $5 per unit. The investment would cause fixed costs to Increase by $10,000 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 Adams 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 Required Required B Che Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 Adams Company currently produces and sells 6,400 units annually of a product that has a variable cost of $7 per unit and annual fixed costs of $280,400. The company currently earns a $78,000 annual profit. Assume that Adams has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $5 per unit. The investment would cause fixed costs to Increase by $10,000 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 Adams 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 Adams Invests in the new production equipment ADAMS COMPANY Contribution margin income statement