Beacon orri amy considering au orma ng its production acility. The initial inves rert ln automa ion would be $8.29 millon and he equiprnert has usefu ile u 7 ears with a residue ve ue o straight-line depreciation. Beecon could expect a production increase of 43,000 units per yeer and a reduction of 20 percent in the labor cost per unit. 01 O The company will use Current (no automation) Proposed (automation) Production and sales volume 87000 units 130,000 units Per Unit 94 Per Total Total $ 94 5 17 12 Sales revenue Varlable costs Direct materials Direct labor Variable iarnufacluring overhead 25 12 54 % 40 Total variable manufacturing costs Contribution margin Fixed marn facturing casts % 45 $1160,000 2.260,000 Net operating income 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) Current (no automation)Proposed (automation) Production and Sales Volume $ 87,000 Units $130,000 Units Per Unit Total Per Unit Total Sales Revenue 94 94 Variable Costs Direct Materials 17 25 12 54 40 Direct Labor 12 Variable Manufacturing Overhead Total Variable Manufacturing Costs Contribution Margin Fixed Manufacturing Costs Net Operating Income 45 $ 1,160,000 2,260,000 1-b. Does Beacon Company favor automation? O No O Yes 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting Rate of Return 3. Determine the project's payback period. (Round your answer to 2 decimal places.) Payback Period years 4. Using a di et present value (NPV) of the proposed investment. (Euture Value of $1, Present Value of $1, Euture Value Annuity of $1, Present Value Annuity of S1.) (Use appropriate factoris) from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollar. Round the final answer to nearest whole dollars.) scount rate of 14 percent, calculate thern t Present Value 5 Recalculate the NPV using a 9% discount rate. Future al e o $1 Present Value ors, Future va ue Annu of S ser al e An should be indicated by a minus sign. Enter the answer in whole dollar. Round the final answer to nearest whole dollars.) of S Use appropriate fac or s from the ble s provided. Negative amount resent Valu