4 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: 10 points a. A suitable location in a large shopping mall can be rented for $4,400 per month. b. Remodeling and necessary equipment would cost $372,000. The equipment would have a 10-year life and a $37,200 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. would cost 20% of sales. for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 12.5% of sales. eBookc. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $470,000 per year. Ingredients d. Operating costs would include $87,000 per year for salaries, $5,200 per year for insurance, and $44,000 per year Print Required: References 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 18%, 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. Req 1 Req 2AReq 2B Req 3A Req 3B Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. e Yogurt Place, Inc. Contribution Format Income Statement Variable expenses: Fixed expenses: Req 1 Req 2A