Stuart Company currently produces and sells 7,600 units annually of a product that has a variable cost of $11 per unit and annual fixed costs of $269,600. The company currently earns a $80,000 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 $9 per unit. The investment would cause fixed costs to increase by $9,600 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 Complete this question by entering your answers in the tabs below. Required A Required B Prepare a contribution margin income statement, assuming that Stuart invests in the new production equipment. STUART COMPANY Contribution margin Income statement