Required Information Beacon Company is considering automating its production facility. The initial investment in automation would be $10.37 million, and the equipment has a useful life of 9 years with a residual value of $1,100,000. 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) 80,000 units Proposed (automation) Production and sales volume 113,000 units Per Unit $90 Per Unit $90 Total Total Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead $ 16 $ 16 25 Total variable manufacturing costs Contribution margin Fixed manufacturing costs 52 $ 38 $ 43 $1,240,000 $2,240,000 Net operating income Required information 2.00 points 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) Current (no a 80,000 Units Per Unit 113,000 Units Per Unit Production and Sales Volume Total Total Sales Revenue 90 90 Variable Costs: Direct Materials S 16 25 $ 16 Direct Labor Variable Manufacturing Overhead Total Variable Manufacturing Costs Contribution Margin Fixed Manufacturing Costs Net Operating Income 52 38 43 S 1,240,000 2,240,000 1-b. Does Beacon Company favor automation? Yes No 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Rate of Return References eBook & Resources Worksheet Learning Objective: 11-01 Calculate the accounting rate of return and describe its major weaknesses. Learning Objective: 11-03 Calculate net present value and describe why it is superior to the other capital budgeting techniques. Difficulty: 3 Hard Learning Objective: 11-02 Calculate the payback period and describe its major weaknesses. Learning Objective: 11-05 Use the net present value method to analyze mutually exclusive capital investments. 4. Required information 2.00 points 3. Determine the project's payback period. (Round your answer to 2 decimal places.) back Period years 4. Using a discount rate of 15 percent, calculate the net present value (NPV) of the proposed investment. (Future Value of S1, Present Value of S1, Future Value Annuity of $1. Present Value Annuity of S1.) (Use appropriate factor(s) 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.) Present Value ReferenceseBook & Resources Learning Objective: 11-01 Calculate the accounting rate of return and describe its major weaknesses. Learning Objective: 11-03 Calculate net present value and describe why it is superior to the other capital budgeting techniques. Worksheet Difficulty: 3 Hard Learning Objective: 11-02 Calculate the payback period and describe its major weaknesses. Learning Objective: 11-05 Use he net present value method to analyze mutually exclusive capital investments. Check my work Required information 2.00 points 5. Recalculate the NPV using a 10% discount rate. Future a eo 1. Presen alueo 1. Eu ureValueAnni yor L Presen value nnu i 1 Negative amount should be indicated by a minus sign. Enter the answer in whole dollar. Round the final answer to nearest whole dollars.) Use appropriate factor s from the tables provided. Present Value value: Required inform 2.00 points You received credit for this question in a previous attempt Required 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) Current (no automation) Proposed (automation) $113,000 Units Per Unit Production and Sales Volume $ 80,000 Units Per Unit Total Total s90S 7,200,000 S9 9010,170,000 Sales Revenue Variable Costs: Direct Materials 16 $16 Direct Labor 25 20 Variable Manufacturing Overhead Total Variable Manufacturing Costs Contribution Margin Fixed Manufacturing Costs Net Operating Income 52 47 383,040,000434,859,000 2,240,000 $2,619,000 $1,240,000 $1,800,000 1-b. Does Beacon Company favor automation? Yes No