$!$

Required information

$[The$ following information applies $to$ the questions displayed below.$]$

Beacon Company $is$ considering automating its production facility. The initial investment $in$ automation would $be\frac{?}{(\frac{?}{?}\text{\$}6\mathrm{.}90\frac{?}{?})}$ million, and the equipment has a useful life $of5$ years with a residual value $of\frac{?}{(\frac{?}{?}\text{\$}1,100,000\frac{?}{?}).}$ The company will use straightline depreciation. Beacon could expect a production increase $of45,000$ units per year and a reduction $of20$ percent $in$ the labor cost per unit.$\frac{?}{b}$

egin$\{tabular\}\{|c|c|c|c|c|\}\frac{?}{h}$

line $ltirow[b]\{2\}\{*\}\{Production$ and sales volume$\}$ & $lticolumn\{2\}\{|l|\}\{Current(no$ automation$)76,000$ units$\}$ & $lticolumn\{2\}\{|l|\}\{Proposed(automation)121,000$ units$\}\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}$ & Per Unit & Total & Per Unit & Total$\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}$ Sales revenue & $\frac{?}{?}$$ $96$ & $\frac{?}{?}$$ $?$ & $\frac{?}{?}$$ $96$ & $\frac{?}{?}$$ $?\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}lticolumn\{5\}\{|l|\}\{Variable$ costs$\}\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}$ Direct materials & $\frac{?}{?}$$ $18$ & & $\frac{?}{?}$$ $18$ &$\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}$ Direct labor & $20$ & & $?$ &$\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}$ Variable manufacturing overhead & $8$ & & $8$ &$\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}$ Total variable manufacturing costs & $46$ & & $?$ &$\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}$ Contribution margin & $\frac{?}{?}$$ $50$ & $?$ & $\frac{?}{?}$$ $54$ & $?\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}$ Fixed manufacturing costs & & $1,150,000$ & & $2,320,000\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}$ Net operating income & & $?$ & & $?\frac{\frac{?}{?}}{?}$

$\frac{?}{\text{h}\text{l}\text{i}\text{n}\text{e}}\frac{?}{e}$

$nd\{tabular\}$

Required:

$2.$ Determine the project's accounting rate $of$ return.

Note: Round your answer $to2$ decimal places.

Accounting rate $of$ return $=\%$