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 Production and sales volume Current (no automation) 30,000 units Per Unit Total $.90 Proposed (automation) 120,000 units Per Unit Total $ 90 2 Sales revenue Variable costs Direct materials Direct labor Variable manufacturing overhead Total variable manufacturing costs Contribution margin Fixed manufacturing costs Net operating income $11 25 10 53 $ 37 $18 > 10 $42 $ 1,250,000 ? $ 2,350,000 2. Determine the project's accounting rate of return (Round your answer to 2 decimal places.)