Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 Zachary Company currently produces and sells 6,500 units annually of a product that has a variable cost of $13 per unit and annual fixed costs of $283,500. The company currently earns a $87,000 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 $11 per unit. The investment would cause fixed costs to increase by $10,900 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). Sales price per unit Rocuired a Required B Zachary Company currently produces and sells 6,500 units annually of a product that has a variable cost of $13 per unit and annual fixed costs of $283,500. The company currently earns a $87,000 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 $11 per unit. The Investment would cause fixed costs to increase by $10,900 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 Prepare a contribution margin income statement, assuming that Zachary invests in the new production equipment ZACHARY COMPANY Contribution margin Income statement