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Please assist with answering this question Franklin Company currently produces and sells 6.500 units annually of a product that has a variable cost of SIO
Please assist with answering this question
Franklin Company currently produces and sells 6.500 units annually of a product that has a variable cost of SIO per unit and annual fixed costs of S221.OOO. The company currently earns a $85,000 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 $8 per unit. The investment would cause fixed Costs to increase by $9,400 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 B Use the equation method to determine the sales price per unit under existing conditions (current equipment is used). Required B > Prepare a contribution margin income statement, assuming that Franklin invests in the new production equipment. Contribution Income statement Required A
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