Beacon Company is considering automating its production facility. The initial investment in automation would be $ million, and the equipment has a useful life of years with a residual value of $ The company will use straightline depreciation. Beacon could expect a production increase of units per year and a reduction of percent in the labor cost per unit.
tabletableProduction and sales volumeSales revenueVariable coststableCurrent no automation unitstableProposed automation unitsPer Unit,Total,Per Unit,Total$$$$ Direct materials,$Direct labor,tableVariable manufacturing overhead,tableTotal variable manufacturing costsContribution marginFixed manufacturing costs,$table
