Stuart Company currently produces and sells 6,700 units annually of a product that has a variable cost of $8 per unit and annual fixed costs of $321,300. The company currently earns a $74,000 annual profit. Assume that Stuart has the opportunity to invest in new labor-saving production equipment that will enable the company to reduce variable costs to $6 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 Stuart 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 A Required B >