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 $2,900 per month b. Remodeling and necessary equipment would cost $282,000. The equipment would have a 20-year life and an $14,100 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation Ingredients would cost 20% of sales per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $320,000 per year d. Operating costs would include $72,000 per year for salaries, $3,700 per year for insurance, and $29,000 of 13.5% of sales