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my WUR Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 Rundle Company currently produces and sells 8,100 units annually of a

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my WUR Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 Rundle Company currently produces and sells 8,100 units annually of a product that has a variable cost of $6 per unit and annual fixed costs of $321,000. The company currently earns a $84,000 annual profit. Assume that Rundle has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $4 per unit. The investment would cause fixed costs to increase by $10,900 because of additional depreciation cost, Required Book Print Werence 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 Rundle 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 Exercise 3-13A (Algo) Conducting sensitivity analysis using the equation method LO 3-5 Rundle Company currently produces and sells 8,100 units annually of a product that has a variable cost of $6 per unit and annual fixed costs of $321,000. The company currently earns a $84,000 annual profit. Assume that Rundle has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $4 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 Rundle 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 Rundle invests in the new production equipment RUNDLE COMPANY Contribution margin Income statement

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