help. number too is incorrect.

[The following Information applies to the questions displayed below) Beacon Company is considering automating its production facility. The initial Investment in automation would be $10.17 million, and the equipment has a useful life of 8 years with a residual value of $1130,000. The company will use straight- Mne 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 Answer is complete and correct. Current (no automation) Proposed (automation) 84,000 units 124,000 units Per Unit Total Per Unit Total $ 98 $ 8,064,000 $ 98 $11 904,000 Production and Sales Volume Sales revenue Variable costs $ 17 5 17 Direct materials Direct labor 15 120 11 43 Variable manufacturing overhead Total vanable manufacturing costs Contribution margin Fixed manufacturing Costs Net operating income 40 56 IS 53 Is 4.452.000 $ 1.130,000 $ 3,322.000 6.944,000 $ 2.150.000 $ 4.704,000 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting rate of return 26.05%