IThe following information applies to the questions displayed below.] Beacon Company is considering automating its production facility. The initial investment in automation would be $782 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 31,000 units per year and a reduction of 20 percent in the labor cost per unit. Current (no automation) Proposed (automation) Production and sales volume 77000 units 108,000 units Pe Total Unit Unit 95 95 Sales revenue Variable costs 18 18 Direct materials 30 Direct labor Variable manufacturing overhead Total variable manufacturing costs 59 42 36 Contribution margin Fixed manufacturing costs S 0,000 2,220.000 Net operating income Required information 0.40 points