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 $6.21 million, and the equipment has a useful life of 5 years with a residual value of $1,060,000. The company will use straight- line depreciation. Beacon could expect a production increase of 40,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no) automation) 88,000 units Proposed (automation). 120,000 units Fer Fer Production and sales volume Unit Total Unit Sales revenue $98 $7 5.98 Total 52 Variable costs Direct materials $18 $18 Direct labor 25 Variable manufacturing overhead 10 10 Total variable manufacturing 53 ? costs Contribution margin $45 $50 Fixed manufacturing costs $1,080,000 $ 2,160,000 Net operating incone 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting rate of return %