1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.)

Current (no automation)			Proposed (automation)
Production and sales volume	76,000 units			120,000 units
	Per Unit		Total	Per Unit		Total
Sales revenue	$	90	?	$	90	?
Variable costs
Direct materials	$	20		$	20
Direct labor		25			?
Variable manufacturing overhead		10			10
Total variable manufacturing costs		55			?
Contribution margin	$	35	?	$	40	?
Fixed manufacturing costs			$ 1,160,000			$ 2,190,000
Net operating income			?			?

1-b. Does Beacon Company favor automation?

	No
	Yes

References

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