[The following information applies to the questions displayed below Beacon Company is considering automating its production facility. The initial investment in automation would be $770 million, and the equipment has a useful life of 6 years with a residual value of $1,040,000. 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. Proposed (automation) 112,000 units Current (no automation) Production and sales volume 72,000 units Per Unit Per Unit $ 97 Total Total $ 97 Sales revenue Variable costs $ 18 Direct materials Direct labor Variable manufacturing overhead 15 Total variable manufacturing costs Contribution margin Flxed manufacturing costs $ 53 $ 56 $1160,000 S2,330,000 Net operating income