Beacon Company is considering automating its production facility. The initial investment in automation would be $$12\mathrm{.}89$ million, and the equipment has a useful life of $10$ years with a residual value of $$1,190,000.$ The company will use straightline depreciation. Beacon could expect a production increase of $38,000$ 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$)],[84,000$ units$]],\backslash$table$[[$Proposed $($automation$)],[122,000$ units$]]],[,$Total,Per Unit,Total$],[$$$91,$$$?,$$$91,],[$Variable costs,,,,$],[\backslash$table$[[$Direct materials$],[$Direct labor$]],$$ $18,,$$ $18,],[\backslash$table$[[$Direct labor$],[$Variable manufacturing overhead$]],\backslash$table$[[20],[9]],,\backslash$table$[[?]],],[$Total variable manufacturing costs,$47,,?,],[\backslash$table$[[$Contribution margin$],[$Fixed manufacturing costs$]],$$$44,\backslash$table$[[\backslash$table$[[?$