Solomon Company currently produces and sells 7,200 units annually of a product that has a variable cost of $10 per unit and annual fixed costs of $339,400. The company currently earns a $71,000 annual profit. Assume that Solomon 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 $9.200 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 Solomon 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 Required B > Required A Required B Prepare a contribution margin income statement, assuming that Solomon invests in the new production equipment. SOLOMON COMPANY Contribution margin Income statement