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 $10.63 million, and the equipment has a useful life of 9 years with a residual value of $1,180,000. The company will use straight- line depreciation. Beacon could expect a production increase of 32,000 units per year and a reduction of 20 percent in the labor cost per unit. Proposed (automation) 119,000 units Current (no automation) 87,000 units Per Per Production and sales volume Unit Total Unit Sales revenue $ 98 $ ? $98 Variable costs Direct materials $ 16 $ 16 Direct labor 25 Variable manufacturing overhead 9 ? 9 Total variable manufacturing costs 50 ? Contribution margin $ 48 ? $53 Fixed manufacturing costs Net operating income $ 1,160,000 ? Total $ ? ? $ 2,220,000 ? 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting rate of return %