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 $8.01 million, and the equipment has a useful life of 6 years with a residual value of $1,110,000. The company will use straight line depreciation. Beacon could expect a production increase of 31,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) 70,000 units Per Unit Total $ 98 $ ? Proposed (automation) 101,000 units Per Unit Total $ 98 $ 16 $ 16 15 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 39 $ 59 $62 1,200,000 $ 2,250,000 Required: 1-a. Complete the following table showing the totals. (Enter your answers in whole dollars, not in millions.) Required: 1-a. Complete the following table showing the totals. (Enter your answers in whole dollars, not in millions. Current (no automation 70,000 units Per Unit Total $ 98 Proposed (automation) 101,000 units Per Unit Total $ 98 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 $ 1,200,000 $ 2,250,000 Required information [The following information applies to the questions displayed below.) Beacon Company is considering automating its production facility. The initial investment in a million, and the equipment has a useful life of 6 years with a residual value of $1,110,000. The line depreciation. Beacon could expect a production increase of 31,000 units per year and a labor cost per unit. Current (no automation) 70,000 units Per Unit Total $ 98 $ ? Proposed (automation) 101,000 units Per Unit Total $ 98 $ ? $ 16 $ 16 15 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 $59 $ 1,200,000 $ 2,250,000 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting rate of return Beacon Company is considering automating its production facility. The initial inves million, and the equipment has a useful life of 6 years with a residual value of $1,11 line depreciation. Beacon could expect a production increase of 31,000 units per labor cost per unit Current (no automation) 70,000 units Per Unit Total $ 98 $ ? Proposed (automation 101,000 unit Per Unit Total $ 98 $ ? $ 16 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 $ 59 62 $ 1,200,000 $ 2,250, 3. Determine the project's payback period. (Round your answer to 2 decimal places.) Payback period years beacon company is considering automaung its production facility. ine initial investment in automatic million, and the equipment has a useful life of 6 years with a residual value of $1,110,000. The compar line depreciation. Beacon could expect a production increase of 31,000 units per year and a reductio labor cost per unit. Current (no automation) 70,000 units Per Unit Total $ 98 $ ? Proposed (automation) 101,000 units Per Unit Total $ ? $ 98 $ 16 $ 16 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 $ 1,200,000 62 $ 2,250,000 4. Using a discount rate of 14 percent, calculate the net present value (NPV) of the proposed investment. (Fut Value of $1. Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tab amount should be indicated by a minus sign. Enter the answer in whole dollars.) Net present value Beacon Company is considering automating its production facility. The initial investment in autor million, and the equipment has a useful life of 6 years with a residual value of $1,110,000. The com line depreciation. Beacon could expect a production increase of 31,000 units per year and a red labor cost per unit. Current (no automation) 70,000 units Per Unit Total $ 98 $ ? Proposed (automation) 101,000 units Per Unit Total $ 98 $ ? $ 16 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 $ 16 15 8 39 $ 59 $ 62 $ 1,200,000 $ 2,250,000 5. Recalculate the NPV using a 9 percent discount rate. (Future Value of $1. Present Value of $1. Future Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amount should be Enter the answer in whole dollars.) Net present value