! 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 $7.52 million, and the equipment has a useful life of 6 years with a residual value of $1,100,000. The company will use straight- line depreciation. Beacon could expect a production increase of 47,000 units per year and a reduction of 20 percent in the labor cost per unit. Production and sales volume Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income Required: 1-a. Complete the following table showing the totals. 1-b. Does Beacon Company favor automation? Current (no automation) 81,000 Proposed (automation) 128,000 units Per Unit $ 94 Total $ ? $ 17 units Per Unit Total $ 94 $ ? $ 17 30 9 56 ? 9 ? $ 38 ? 1,240,000 ? $ 44 ? 2,200,000 ? Complete this question by entering vour answers in the tabs below. < Prev 5 6 7 9 of 9 Next > Complete this question by entering your answers in the tabs below. Req 1A Req 1B Complete the following table showing the totals. Note: Enter your answers in whole dollars, not in millions. Current (no automation) 81000 units Proposed (automation) 128000 units Production and Sales Volume Per Unit Total Per Unit Total Sales revenue $ 94 $ 94 Variable costs Direct materials $ 17 $ 17 Direct labor 30 Variable manufacturing overhead 9 9 Total variable manufacturing costs 56 Contribution margin $ 38 $ 44 Fixed manufacturing costs 1,240,000 2,200,000 Net operating income < Reg 1A Req 1B > 1-a. Complete the following table showing the totals. 1-b. Does Beacon Company favor automation? Complete this question by entering your answers in the tabs below. Req 1A Req 1B Does Beacon Company favor automation? Does Beacon Company favor automation? < Req 1A Req 1B > 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 $7.52 million, and the equipment has a useful life of 6 years with a residual value of $1,100,000. The company will use straight- line depreciation. Beacon could expect a production increase of 47,000 units per year and a reduction of 20 percent in the labor cost per unit. Production and sales volume Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income Required: 2. Determine the project's accounting rate of return. Note: Round your answer to 2 decimal places. Accounting rate of return % Current (no automation) 81,000 Proposed (automation) 128,000 units units Per Unit $ 94 Total $ ? Per Unit $ 94 Total $ ? $ 17 $ 17 ? 30 9 56 $ 38 ? 1,240,000 ? 9 $ 44 ? ? 2,200,000 ? < Prev 6 7 8 9 of 9 Next >