2 a. A suitable location in a large shopping mall can be rented for $4,200 per month b. Remodeling and necessary equipment would cost $360,000. The equipment would have a 15-year life and a $24,000 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $450,000 per year. Ingredients would cost 20% of sales d. Operating costs would include $85,000 per year for salaries. $5,000 per year for insurance, and $42,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 15.0% of sales. Print References Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet 2 a Compute the simple rate of return promised by the outlet 2.b. If Mr. Swanson requires a simple rate of return of at least 21% should he acquire the franchise? 3-0. Compute the payback period on the outlet 3-b. If Mr. Swanson wants a payback of three years or less, wil he acquire the franchise? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Reg 20 Reg JA Reg 36 Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet The Yogurt Place, Inc. Contribution Format Income Statement Variable expenses Reg 1 Reg 2A Req 2B Req 3A Req 3B Prepare a contribution format income statement that shows the expected net operating income each year outlet. The Yogurt Place, Inc., Contribution Format Income Statement Variable expenses: Fixed expenses Reg Req 2A D. Remodeling and necessary equipment would cost $360,000. The equipment would nave a 15-year life and a $24,000 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation C. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $450,000 per year. Ingredients would cost 20% sales d. Operating costs would include $85,000 per year for salaries, $5,000 per year for insurance, and $42,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 15.0% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet 2-a. Compute the simple rate of return promised by the outlet 2-b. If Mr. Swanson requires a simple rate of return of at least 21%, should he acquire the franchise? 3-a. Compute the payback period on the outlet. 3-5. If Mr. Swanson wants a payback of three years or less, will he acquire the franchise? Complete this question by entering your answers in the tabs below. Reg 2A Reg 1 Reg 28 Reg 3A Reg 3B Compute the simple rate of return promised by the outlet. (Round percentage answer to 1 decimal place.) % Simple rate of return D. Remodeling and necessary equipment would cost $360,000. The equipment would have a 15-year life and a $24,0 value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciata C. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $450,000 per year. Ingredients wo sales. d. Operating costs would include $85,000 per year for salaries, $5,000 per year for insurance, and $42,000 per year fo addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 15.0% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franc 2-a. Compute the simple rate of return promised by the outlet 2-b. If Mr. Swanson requires a simple rate of return of at least 21%, should he acquire the franchise? 3-a. Compute the payback period on the outlet 3-b. If Mr. Swanson wants a payback of three years or less, will he acquire the franchise? 5 Complete this question by entering your answers in the tabs below. Reg 1 Reg za Reg 20 Req 3A Reg 3B if Mr. Swanson requires a simple rate of return of at least 21%, should he acquire the franchise? Yes No D. Remodeling and necessary equipment would cost $360,000. The equipment would nave a 15-year lite and a $24,000 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation C. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $450,000 per year. Ingredients would cost 209 sales d. Operating costs would include $85,000 per year for salaries, $5,000 per year for insurance, and $42,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 15.0% of sales. Ant Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. 2-a. Compute the simple rate of return promised by the outlet. 2.b. If Mr. Swanson requires a simple rate of return of at least 21%, should he acquire the franchise? 3-a. Compute the payback period on the outlet 3-b. If Mr. Swanson wants a payback of three years or less, will he acquire the franchise? rences Complete this question by entering your answers in the tabs below. Reg 1 Reg 2A Req 28 Reg 3A Reg 3B Compute the payback period on the outlet. (Round your answer to 1 decimal place.) Payback period years Hemodeling and necessary equipment would cost $360,000. The equipment would have a 15-year life and a $24,000 S value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. . Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $450,000 per year. Ingredients would sales. d. Operating costs would include $85,000 per year for salaries, $5,000 per year for insurance, and $42,000 per year for uti addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 15.0% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise 2-a. Compute the simple rate of return promised by the outlet 2-b. If Mr. Swanson requires a simple rate of return of at least 21%, should he acquire the franchise? 3-a. Compute the payback period on the outlet. 3-b. If Mr. Swanson wants a payback of three years or less, will he acquire the franchise? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 28 Reg 3A Reg 3B If Mr. Swanson wants a payback of three years or less, will he acquire the franchise? Yes No