The following information applies to the questions displayed below Beacon Company is considering automating its production facility. The initial investment in automation would be $11.85 million, and the equipment has a useful life of 9 years with a residual value of $1140,000. The company will use streight-line depreciation. Beacon could expect a production increase of 48,000 units per year and a reduction of 20 percete labor cost per unit. Current (no automation) Proposed (automation) Production and sales volume 73,000 units 121,000 units Per Total Unit $ 96 $ 96 Sales revenue Varlable costs Direct materials Direct labor Variable manufacturing overhead 25 Total variable manufacturing costs Contribution margin Fixed manufacturing costs 53 $ 43 $ 48 $1,060,000 $ 2,200,000 Net operating income