Rundle Company currently produces and sells 8,100 units annually of a product that has a variable cost of $16 per unit and annual fixed costs of $229,900. The company currently earns a $86,000 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 $14 per unit. The investment would cause fixed costs to increase by $10,800 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 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 B Rundle Company currently produces and sells 8,100 units annually of a product that has a variable cost of $16 per unit and annual fixed costs of $229,900. The company currently earns a $86,000 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 $14 per unit. The investment would cause fixed costs to increase by $10,800 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