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 $4,900 per month. b. Remodeling and necessary equipment would cost $402,000. The equipment would have a 20 -year life and a $20,100 salvoge value. Straight-iline 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 $520,000 per year, ingredients would cost 20% of sales. d. Operating costs would include $92,000 per year for salaries, $5,700 per year for insurance, and $49,000 per year for utitities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Piace, Incorporated, of 15.0% 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 Mc. Swanson requires a simple rate of return of at least 20%, should he acquire the franchise? 3-a. Compute the payback period on the outlet. 3b. If Mr. Swanson wants a payback of two years or less, will he acquire the franchise? Complete this question by entering your answers in the tabs below. Prepare a contribution format income statament that shows the expectnd net cperating income each year from the franchise Complete this questlon by entering your answers In the tabs below. Prepare a contrbution format income statement that shows the expected net operating income each year from the franchise autjet. b. Remodeling and necessary equipment would cost $402,000. The equipment would have a 20 -year life and a $20,100 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 $520.000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $92,000 per year for salaries, $5,700 per year for insurance, and $49,000 per year for utilities, In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, incorporated, of 15.0% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outet. 2-a. Compute the simple rate of return promised by the outlet. 2.b. If Mr. Swanson requires a simpie rate of return of at least 20%. should he acquire the franchise? 3-a. Compute the payback period on the outlet. 3-b. If Mr. Swanson wants a payback of two years or less, will he acquire the franchise? Complete this question by entering your answers in the tabs below. Compute the simple rate of return promised by the outlet. (Round your answer to 1 decimal place.) value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. c. Based on similar outlets elsewhere. Mc. Swanson estimates that sales would total $520,000 per yeac. ingredients would cost 20 . sales, d. Operating costs would include $92,000 per year for salaries, $5.700 per year for insurance, and $49,000 per year for utilies. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Incorporated, of 15.0% 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 20%, should he acquire the franchise? a-a. Compute the payback period on the outlet. 3.b. If Mc. Swanson wants a paybock of two years or less, wil he acquire the franchise? Complete this question by entering your answers in the tabs helow. If Mr. Swanson requires a simple rate of return of at least 20%, should han acpuire the franchise? b. Remodeling and necessary equipment would cost $402,000. The equipment would have a 20 -year life and a $20,100 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreclation. c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $520,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $92,000 per year for salarles, $5,700 per year for insurance, and $49,000 per year for utilities, in addition. Mr. Swanson would have to pay a commission to The Yogurt Place, Incorporated, of 15.0% 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 20%, should he acquire the franchise? 3-a. Compute the payback period on the outlet. 3-b. If Mr. Swanson wants a payback of two years or less, will he acquire the franchise? Complete this question by entering your answers in the tabs below. Compute the payback period on the outlet. (Round your answer to 1 decimal place.) 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 $520.000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $92,000 per year for salaries, $5,700 per year for insurance, and $49,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Incorporated, of 15.0% 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 20%, should he acquire the franchise? 3-a. Compute the payback period on the outiet. 3-b. If Mr. Swanson wants a payback of two years or less, will he acquire the franchise? Complete this question by entering your answers in the tabs below. If Mr. Swanson wants a payback of two years or less, wil he acquire the franchise