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 $3.500 per month. b. Remodeling and necessary equipment would cost $270,000. The equipment would have a 15 -year life and an $18,000 salvage value. Straight-line deprociation would be used, and the salvage value would be considered in computing depreciation. c. Based on similar outlets elsewhere, M. Swanson estimates that sales would total $300,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $70,000 per year for salaries, $3,500 per year for insurance, and $27,000 per year for ubiities. in addition, Mr. Swanson would have to pay a commission to The Yogurt Place, incorporated, of 12.5% of sales. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. 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 $3,500 per month. b. Remodeling and necessary equipment would cost $270,000. The equipment would have a 15 -year life and an $18,000 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. c. Based on similar outiets elsewhere, Mr. Swanson estimates that soles would total $300,000 per year Ingredients would cost 20% of sales. d. Operating costs would include $70,000 per year for salaries, $3,500 per year for insurance, and $27,000 per year for utilities, in addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Incorporated, of 12.5% 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 12%, should he acquire the franchise? 3-a. Compute the payback period on the outlet. 3.b. If Mt. Swanson wants a paybock of four years or less, will he ocquire the franchise? Complete this question by entering your answers in the tabs below. Compute the simple rate of return promised by the outtet, (abound your ninat ontwer to the neareat whote percont) 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 $3,500 per month. b. Remodeling and necessary equipment would cost $270,000. The equipment would have a 15 -year life and an $18,000 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. c. Based on similar outlets eisewhere, Mr. Swanson estimates that sales would total $300,000 per yeor. Ingredients would cost 20% of sales. d. Operating costs would include $70,000 per year for salaries, $3,500 per year for insurance, and $27,000 per year for utlities. In addition. Mr. Swanson would have to pay a commission to The Yogurt Place, Incorporated, of 12.5% of sales. Required: 1. Prepare a contribution formot 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 12% should he acquire the franchise? 3-a. Compute the paybock period on the outlet 3-6. I Mr. Swanson wants a poytbeck of four years or less, will he acquite the franchise? Complete this question by entering your answers in the tabs below. Compute the paytack period oo the outlet, (Round your andwer to 1 decimat ptace) 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 $3.500 per month. b. Remodeling and necessary equipment would cost $270,000. The equipment would have a 15 -year life and an $18,000 salvage value. Straight-line deprociation would be used, and the salvage value would be considered in computing depreciation. c. Based on similar outlets elsewhere, M. Swanson estimates that sales would total $300,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $70,000 per year for salaries, $3,500 per year for insurance, and $27,000 per year for ubiities. in addition, Mr. Swanson would have to pay a commission to The Yogurt Place, incorporated, of 12.5% of sales. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. 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 $3,500 per month. b. Remodeling and necessary equipment would cost $270,000. The equipment would have a 15 -year life and an $18,000 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. c. Based on similar outiets elsewhere, Mr. Swanson estimates that soles would total $300,000 per year Ingredients would cost 20% of sales. d. Operating costs would include $70,000 per year for salaries, $3,500 per year for insurance, and $27,000 per year for utilities, in addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Incorporated, of 12.5% 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 12%, should he acquire the franchise? 3-a. Compute the payback period on the outlet. 3.b. If Mt. Swanson wants a paybock of four years or less, will he ocquire the franchise? Complete this question by entering your answers in the tabs below. Compute the simple rate of return promised by the outtet, (abound your ninat ontwer to the neareat whote percont) 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 $3,500 per month. b. Remodeling and necessary equipment would cost $270,000. The equipment would have a 15 -year life and an $18,000 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. c. Based on similar outlets eisewhere, Mr. Swanson estimates that sales would total $300,000 per yeor. Ingredients would cost 20% of sales. d. Operating costs would include $70,000 per year for salaries, $3,500 per year for insurance, and $27,000 per year for utlities. In addition. Mr. Swanson would have to pay a commission to The Yogurt Place, Incorporated, of 12.5% of sales. Required: 1. Prepare a contribution formot 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 12% should he acquire the franchise? 3-a. Compute the paybock period on the outlet 3-6. I Mr. Swanson wants a poytbeck of four years or less, will he acquite the franchise? Complete this question by entering your answers in the tabs below. Compute the paytack period oo the outlet, (Round your andwer to 1 decimat ptace)