The following information applies to the questions displayed below Beacon Company is considering automating its production facility. The initial investment in automation would be $10.21 million, and the equipment has a useful life of 8 years with a residual value of $1,090,000. The company will use straight-line depreciation. Beacon could expect a production increase of 31.000 units per year and a reduction of 20 percent in the labor cost per unit Current (no automation) Proposed Per UnitT 88,000 units otal 119,000 units otal Production and sales volume Per Unit $ 94 $ 94 Sales revenue Variable costs $ 19 Direct materials Direct labor Variable manufacturing overhead $ 19 20 10 49 $ 45 10 otal variable manufacturing costs Contribution margin Flxed manufacturing costs $ 49 $1050000$2280000 Net operating income Required information 2.00 points Required e the following table showing the totals. (Enter all answers in whole dollars.) Required 1-a. Complete the following table showing the totals. (Enter all answers in whole dollars.) Proposed (automation) $119,000 Units Per Unit Current (no automation) Production and Sales Volume 88,000 Units Per Unit Total Total Sales Revenue $ 94 8,272,00094 $11,186,000 Variable Costs Direct Materials $ 19 $ 19 16 10 45 Direct Labor 20 10 49 Variable Manufacturing Overhead Total Variable Manufacturing Costs Contribution Margin Fixed Manufacturing Costs Net Operating Income $ 45 3,960,000$ 49 5,831,000 2,280,000 $ 3,551,000 S 1,050,000 $ 2,910,000 1-b. Does Beacon Company favor automation? O No O Yes here to search . Determine the project's accounting rate of return. (Round your answer to 2 decimal places.) ounting Rate of Return (0.14) 0 References eBook & Resources Worksheet Learning Objective: 11- 01 Calculate the accounting rate of return and describe its major weaknesses. Learning Objective: 11-03 Calculate net prese value and describe why it is superior to the oth capital budgeting techniques. Difficulty: 3 Hard Leaing Objective: 11- Learning Objective: 11-05 Use the net present 02 Calculate the payback period and describe its major weaknesses. value method to analyze mutually exclusive cap investments. 3. Determine the project's payback period. (Round your answer to 2 decimal places.) Payback Period years References eBook & Resources Worksheet Learning Objective: 11- Learning Objective: 11-03 Calculate 01 Calculate the accounting rate of return capital budgeting techniques. and describe its major weaknesses value and describe why it is superic Difficulty: 3 Hard Learning Objective: 11 Leaning Objective: 11-05 Use the n 02 Calculate the payback period and describe its major weaknesses. value method to analyze mutually ex investments. eztomneddcation.com/mm.tpx -0.3715421542414226 1544673 Required information value 2.00 points 4. Using a discount rate of 14 percent, calculate the net present value (NPV) of the proposed investment. (Future Value of $1. Present Value of S1, Future Value Annuity of $1. Present Value Annuity of $1.) (Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollar. Round the final answer to nearest whole dollars.) Net Present Value References eBook &Resources Learmning Objecive: 11. Learning Objective 11-03 Calculate net presont Worksheet 01 Calculate the value and describe why it is superior to the other accounting rate of return capial budgeting techniques and describe its major weaknessers Difficulty: 3 Hard Leaning Objectivo 11- Leaning Objective: 11-05 Use the net present Required information value 2.00 points 5 Recalculate the NPV using a 9% discount rate. Eutureva veo 1. Present alueoH Future aive nnu yos! Present Value Annuity of $1.)(Use appropriate factor(s) from the tables provided. Negative amount should be indicated by a minus sign. Enter the answer in whole dollar. Round the final answer to nearest whole dollars.) References eBook &Resources Leaming Objective: 11 01 Calculate the Leaming Objective: 11-03 Calculate net present value and describe why it is superior to the other Worksheet accounting rate of retum capital budgeting techniques and describe its major Difficulty: 3 Hard Leanng Objectiwe: 11.earning Objective: 11.05 Use the not present value method to analyze mutually exclusive capita period and descibe itsestments ype here to searc