help please!

Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Incorporated, 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 $3,300 per month. b. Remodeling and necessary equipment would cost $306,000. The equipment would have a 15 -year tife and a $20,400 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 $360,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $76,000 per year for salaries, $4,100 per year for insurance, and $35,000 per year for utilities. In addition. Mr. Swanson would have to pay a commissiont to The Yogurt Place, Incorporated, of 15 5\% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income cach year from the franchise outlet. 2-a. Compute the simple rate of retum promised by the outlet. 2.b. If Mr. Swanson requires a simple rate of return of at leatt 17\%, should he acquire the franchise? 3-a. Compute the poyback period on the outlet. 3.b. If Me. Swanson wants a payback of three years or less, will he acquire the franchise