Explain and show work

Perez Company currently produces and sells 8,200 units annually of a product that has a variable cost of $17 per unit and annual fixed costs of $247,200. The company currently earns a $89,000 annual profit. Assume that Perez has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $15 per unit. The investment would cause fixed costs to increase by $10,100 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 Perez invests in the new production equipment. Complete this question by entering your answers in the tabs below Required ARequired B Use the equation method to determine the sales price per unit under existing conditions (current equipment is used) ales price per unit