Fanning Company currently produces and sells 7400 units annually of a product that has a variable cost of $9 per unit and annual fixed costs of $260,800 The company currently earns a $87,000 annual profit Assume that Fanning has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to 57 per unit. The investment would cause fixed costs to increase by $10,200 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 Fanning invests in the new production equament 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 prio per unit Required 3 > earch O Al! 78F PII d. go Pe Son Home End POUP * & % 5 3 > O 4 6 7 00 E R T Y U o D F G H J L : V A C V 00 N M Alt Fanning Company currently produces and sells 7,400 units annually of a product that has a variable cost of $9 pertinet and annual fixed costs of $260,800. The company currently earns a $87,000 annual profit Assume that Fonning has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to 57 per unit. The investment would cause mixed costs to increase by $10.200 because of additional depreciation cost Required a. Use the equation method to determine the sales price per unit under existing conditions (cument equipment is used) b. Prepare a contribution margin income statement assuming that Fanning invests in the new production equipment Complete this question by entering your answers in the tabs below. Required A Required Prepare a contribution margin income statement, assuming that Fanning invests in the new production equipment FANNING COMPANY Contribution margin income statement 9200 to search O RI 787 PI de PESER S 4 > 0 3 5 6 7 8 O E R T Y U 0 P 5 D F G . V ? C V B NM Alt Alt