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please do Required information [The following information applies to the questions displayed below.) Beacon Company is considering automating its production facility. The initial investment in
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Required information [The following information applies to the questions displayed below.) Beacon Company is considering automating its production facility. The initial investment in automation would be $855 million, and the equipment has a useful life of 7 years with a residual value of $1130,000. The company will use straight- line depreciation Beacon could expect a production increase of 33,000 units per year and a reduction of 20 percent in the labor cost per unit Current (no automation) Proposed (automat) 36,000 units 119,000 units Per Production and sales volume Total und Total Sales avenue Variable cost Direct materials 5.15 Direct labor Varnarne overhead total warble manufacturing costs 2 contestation margin 151 11,130.000 52.00 Per Unit $90 $90 $15 30 5 54 145 5. Recethewing a 8 percent discount vote. You. Best Value 1.5 Salom (Use appropriate foctor) from the tables provided. Negative amount should be indicated by a minus sign Enter the onwwer in whole dollars) Step by Step Solution
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