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Beacon Company is considering automating its production facility. The initial investment in automation would be $$10\mathrm{.}25$ million, and the equipment has a useful life of $8$ years with a residual value of $$1,130,000.$ The company will use straightline depreciation. Beacon could expect a production increase of $43,000$ units per year and a reduction of $20$ percent in the labor cost per unit.

$\backslash$table$[[$Production and sales volume,$\backslash$table$[[$Current $($no automation$)],[87,000$ units$]],\backslash$table$[[$Proposed $($automation$)],[130,000$ units$]]],[,,,],[$Sales revenue,$$96,$$$?,$$$96,$$$?],[$Variable costs,,,,$],[$Direct materials,$$20,,$$$20,],[$Direct labor,$15,,?,],[$Variable manufacturing overhead,$10,,10,],[$Total variable manufacturing costs,$45,,?,],[$Contribution margin,$$51,?{?}^{?}*20,000,$$$54,\backslash$table$[[?$