Zachary Company currently produces and sells $7,100$ units annually of a product that has a variable cost of $$13$ per unit and annual fixed costs of $$282,000.$ The company currently earns a $$73,000$ annual profit. Assume that Zachary has the opportunity to invest in new labor$-$saving production equipment that will enable the company to reduce variable costs to $$11$ per unit. The investment would cause fixed costs to increase by $$9,700$ because of additional depreciation cost.

Required

Use the equation method to determine the sales price per unit under existing conditions $($current equipment is used$).$

Prepare a contribution margin income statement, assuming that Zachary invests in the new production equipment.