i only need help with question 1. Is there anything im missing?

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 suitable location in a large shopping mall can be rented for $3,400 per month b. Remodeling and necessary equipment would cost $312,000. The equipment would have a 20-year life and a $15,600 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. G. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $370,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $77,000 per year for salaries, $4,200 per year for insurance, and $34,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 11.0% 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 22%, 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 1 Reg 2A Reg 28 Reg A Reg 38 Prepare a contribution format income statement that shows the expected net operating Income each year from the franchise Outlet Prepare a contribution format Income statement that shows the expected net operating Income outlet. $ 370,000 The Yogurt Place, Inc., Contribution Format Income Statement Sales Variable expenses: Cost of ingredients 74,000 Commissions 40,700 114,700 255,300 R $ Contribution margin Fixed expenses: Salaries Rent Depreciation Insurance Utilities 77,000 40.800 14,820 4.200 34,000 WWE 170,820 84,480 Req 2A >