3 parts

Paul Swanson has an opportunity to acquire a franchise from the Yogurt Place, Inc., to dispense frozen yogurt products under The Yogurt Place name. Mr. Swanson has assembled the following information relating to the franchise: a. A suitable location in a large shopping mall can be rented for $4,300 per month b. Remodeling and necessary equipment would cost $366,000. The equipment would have a 20-year life and a $18,300 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 $460,000 per year. Ingredients would cost 20% of d. Operating costs would include $86,000 per year for salaries $5,100 per year for Insurance, and $43,000 per year for utilities in addition, Mr. Swanson would have to pay a commission to The Yogurt Ploce, Inc., of 12.0% of sales. 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 22%, should he acquire the franchise? 3-a. Compute the payback period on the outlet 3-b. if Mr. Swanson wants a payback of two years or less, will he acquire the franchise? Complete this question by entering your answers in the tabs below. Reg 1 Reg 2 Reg 2B Reg 3A Reg 38 Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet The Yogurt Placo, Inc. Contribution Format Income Statement Variable expenses 0 0 Fixed expenses 0 0 Complete this question by entering your answers in the tabs below. Reg 1 Rea 2 Reg 2B Reg Req 3B Compute the simple rate of return promised by the outlet. (Round your answer to 1 decimal place.) Simple rate of return % Complete this question by entering your answers in the tabs below. Req 1 Req 2A Req 2B Req Req 3B Compute the payback period on the outlet. (Round your answer to 1 decimal place.) Payback period years