Stuart Company currently produces and sells 7,800 units annually of a product that has a variable cost of $6 per unit and annual fixed costs of $430,200. The company currently earns a $69,000 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 $4 per unit. The investment would cause fixed costs to increase by $9,800 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 Stuart invests in the new production equipment. > Answer is complete but not entirely correct. 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 Sales $546,000 Variable costs 46,800 X Contribution margin $ 499,200 X Fixed costs 440,000 x Net income $ 59,200 < Required A Required B >