Franklin Company currently produces and sells 7.000 units annually of a product that has a variable cost of $9 per unit and annual fixed costs of $363,000. The company currently earns a $78,000 annual profit . Assume that Franklin has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $7 per unit. The investment would cause fixed costs to increase by $9,300 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 Franklin Invests in the new production equipment Complete this question by entering your answers in the tabs below. Required A Required Use the equation method to determine the sales price per unit under existing conditions (current equipment is used). per unit Required > Franklin Company currently produces and sells 7,000 units annually of a product that has a variable cost of $9 per unit and annual fixed costs of $363,000. The company currently earns a $78,000 annual profit. Assume that Franklin has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $7 per unit. The investment would cause fixed costs to increase by $9,300 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 Franklin 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 Frankin invests in the new production equipment. FRANKLIN COMPANY Contribution margin Income statement