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 $4,100 per month. b. Remodeling and necessary equipment would cost $354,000. The equipment would have a 20-year life and an $17,700 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 $440,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $84,000 per year for salaries, $4,900 per year for insurance, and $41,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 14.5% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. Answer is not complete PAUL SWANSON Contribution Format Income Statement Sales Variable expenses: Cost of ingredients Selling and administrative expenses: Salaries Rent Depreciation nsurance Utilities