[The following information applies to the questions displayed below) Beacon Company is considering automating its production facility. The initial investment in automation would be $10.08 million, and the equipment has a useful life of 8 years with a residual value of $1,040,000. The company will use straight- line depreciation. Beacon could expect a production increase of 35,000 units per year and a reduction of 20 percent in the labor cost per unit Current (no automation) $1,000 units Proposed (automation) 116,000 units Per Per Production and sales volume Unit Total Unit Total Sales revenue 8.95 87 $95 87 Variable costs Direct materials $17 $ 17 Direct labor 20 Variable manufacturing overhead, 12 12 Total variable manufacturing 49 costs 7 Contribution margin $46 7 $50 7 Fixed manufacturing costs $1,210,000 $ 2,270,000 Net operating income 7 PA11-2 Part 2 2. Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) Accounting rate of return