Beacon Company is considering automating its production facility. The initial investment in automation would be $$6\mathrm{.}61$ million, and the equipment has a useful life of $5$ years with a residual value of $$1,160,000.$ The company will use straightline depreciation. Beacon could expect a production increase of $40,000$ units per year and a reduction of $20$ percent in the labor cost per unit.

$\backslash$table$[[\backslash$table$[[$Production and sales volume$],[$Sales revenue$]],\backslash$table$[[$Current $($no automation$)],[78,000$ units$]],\backslash$table$[[$Proposed $($automation$)],[118,000$ units$]]],[$Per Unit,Total,Per Unit,Total$],[\backslash$table$[[$Sales revenue$],[$Variable costs$]],$$$99,$$$?,$$$99,$$$?],[$Direct materials,,,,$],[$Direct labor,$\backslash$table$[[25]],,\backslash$table$[[$$ $17]],],[$Variable manufacturing overhead,$10,,10,],[\backslash$table$[[$Total variable manufacturing costs$],[$Contribution marain$]],52,,?,],[\backslash$table$[[$Contribution margin$],[$Fixed manufacturing costs$]],$$$47,\backslash$table$[[1,100,000$