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 $4,300 per month. b. Remodeling and necessary equipment would cost $366,000. The equipment would have a 20-year life and a $18,300 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 $460,000 per year. Ingredients would cost 20% of sales d. Operating costs would include $86,000 per year for salaries, $5,100 per year for Insurance, and $43,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 12.0% 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-b. If Mr. Swanson wants a payback of two years or less, will he acquire the franchise? "piete this question by entering your answers in the tads Delow. Req 1 Req 2A Req 2B Req Req 3B Prepare a contribution format income statement that shows the expected net operatir outlet. The Yogurt Place, Inc., Contribution Format Income Statement Variable expenses: 0 0 0 Fixed expenses: + 0 0 d. Operating costs would include $86,000 per ye addition, Mr. Swanson would have to pay a con Required: 1. Prepare a contribution format income statement 2-a. Compute the simple rate of return promised t 2-b. If Mr. Swanson requires a simple rate of return 3-a. Compute the payback period on the outlet. 3-b. If Mr. Swanson wants a payback of two years Complete this question by entering your ans Req 1 Reg 2A Req 2B Reg 3 Compute the simple rate of return promised by the Simple rate of return %