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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 revenuetableCurrent no automation unitstableProposed automation unitsPer Unit,Total,Per Unit,Total$$ $$ tableVariable costsDirect materialstableDirect materialsDirect labor$ $ Variable manufacturinq overhead,ttableVariable manufacturing overheadTotal variable manufacturing costs:Contribution margin,tableFixed manufacturing costs,$$
