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 a $17,400 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 $430,000 per year. Ingredients would cost 20% of sales d. Operating costs would include $83.000 per year for salaries, $4.800 per year for insurance, and $40,000 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 2-a. Compute the simple rate of retur promised by the outlet 26. If Mt Swanson requires a simple rate of return of at least 19%, should he acquire the franchise? 3-3. Compute the payback period on the outlet 36. Mr. Swanson wants a payback of three years or less will he acquire the franchise