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 $9.25 million, and the equipment has a useful life of 8 years with a residual value of $1,090,000. The company will use straight- line depreciation. Beacon could expect a production increase of 48,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) Proposed (automation) 127,000 units Total $7 79,000 units Per Per Production and sales volume Unit Total Unit Sales revenue $96 $7 $96 Variable costs Direct materials $16 $16 Direct labor 20 ? Contribution margin Net operating income Variable manufacturing overhead Total variable manufacturing costs Fixed manufacturing costs 9 9 45 $51 $55 $ 1,070,000 ? $2,200,000 2 Required: 1-a. Complete the following table showing the totals. (Enter your answers in whole dollars, not in millions.) Current (no automation) Proposed (automation) $ 79,000 units 127,000 units Production and Sales Volume Per Unit Total Per Unit Total Sales revenue $ 00 $ 06 Variable costs Direct materials Direct labor 16 $ 16 20 Variable manufacturing overhead 9 Total variable manufacturing costs 45 Contribution margin $ 51 $ 55 Fixed manufacturing costs $ 1,070,000 $ 2,200,000 Net operating income