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 $15 million, and the equipment has a useful life of 10 years with a residual value of $500,000. 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) Proposed (automation) 120,000 units Production and sales volume 80,000 units: Per Per Total Total Unit Unit Sales revenue $90 $90 Variable costs Direct materials $18 $18 Direct labor 25 ? Variable manufacturing overhead 10 10 Total variable manufacturing costs. 53 7 Contribution margin $37 ? $42 Fixed manufacturing costs $1,250,000 Net operating income ? $2,350,000 ? 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting Rate of Return 34.71%