?

6. 214 points 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 $4,000 per month. b. Remodeling and necessary equipment would cost $348,000. The equipment would have a 20-year life and an $17,400 salvage value. Straight-line depreciation would be used, and the salvage value would c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $430,000 per year d. Operating costs would include $83,000 per year for salaries, $4,800 per year for insurance, and $40,000 be considered in computing depreciation. ingredients would cost 20% of sales. per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc. of 14.0% of sales Required: 1. 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 $ 430,000 Variable expenses Cost of ingredients Commissions Contribution margin Fixed expenses 430.000 Insurance Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet $ 430,000 Variable expenses Cost of ingredients Commissions ontribution margin 430,000 Fixed expenses Insurance Rent Depreciation et operating income 430,000 2a Compute the simple rate of return promised by the outlet (Round percentage answer to 1 decimal place, i.e. 0.123 should be considered as 12.3%.) income 430,000 2a Compute the simple rate of return promised by the outlet. (Round percentage answer to 1 decimal No