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 $5,000 per month b. Remodeling and necessary equipment would cost $408,000. The equipment would have a 20-year life and a $20,400 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 $530,000 per year. Ingredients would cost 20% of sales d. Operating costs would include $93,000 per year for salaries, $5.800 per year for insurance, and $50,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 15.5% 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 18%, 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. Reg 1 Reg 2A Red 26 Req 3A Reg38 Prepare a contribution format income statement that shows the expected net operating Income each year from the franchise outlet. The Yogurt Place, Inc., Contribution Format Income Statement Variable expenses Fbed expenses Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Req 3A Reg 3B Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. The Yogurt Place, Inc., Contribution Format Income Statement Variable expenses: Fixed expenses Ree Reg 2A > Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense frozen yogurt p 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 $5,000 per month b. Remodeling and necessary equipment would cost $408,000. The equipment would have a 20-year life and a value. Straight-line depreciation would be used, and the salvage value would be considered in computing der c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $530,000 per year. Ingredie sales d. Operating costs would include $93,000 per year for salaries, $5.800 per year for insurance, and $50,000 per addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 15.5% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from 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 18%, 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. Reg 1 Reg 2A Req 2B Req 3A Req 3B Compute the simple rate of return promised by the outlet. (Round percentage answer to 1 decimal place.) Simple rate of return C Reg 1 Req 2B > Seved Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense frozen yogurt p 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 $5,000 per month. b. Remodeling and necessary equipment would cost $408,000. The equipment would have a 20-year life and a value. Straight-line depreciation would be used, and the salvage value would be considered in computing de C. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $530,000 per year. Ingredie sales. d. Operating costs would include $93,000 per year for salaries, $5,800 per year for insurance, and $50,000 per addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 15.5% of sales Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from 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 18%, should he acquire the franchise? 3-a. Compute the payback period on the outlet. 3-b. If Mr. Swanson wants a payback of twolyears or less, will he acquire the franchise? Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Reg 2B Req 3A Reg 3B If Mr. Swanson requires a simple rate of return of at least 18%, should he acquire the franchise? Yes Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense frozen yogurt pro 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 $5,000 per month b. Remodeling and necessary equipment would cost $408,000. The equipment would have a 20-year life and a $ value. Straight-line depreciation would be used, and the salvage value would be considered in computing depr c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $530,000 per year. Ingredien sales. d. Operating costs would include $93,000 per year for salaries, $5.800 per year for insurance, and $50,000 pery addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 15.5% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from th 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 18%, 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. Reg 1 Reg 2A Reg 2B Req3A Reg 3B Compute the payback period on the outlet. (Round your answer to 1 decimal place.) Payback period years Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense frozen yogurt pro 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 $5,000 per month b. Remodeling and necessary equipment would cost $408,000. The equipment would have a 20-year life and a S. value. Straight-line depreciation would be used, and the salvage value would be considered in computing depre c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $530,000 per year. Ingredient sales. d. Operating costs would include $93,000 per year for salaries, $5,800 per year for insurance, and $50,000 per ye addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 15.5% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from th 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 18%, 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. Reg 1 Req 2A Reg 28 Req 3A Req 38 If Mr. Swanson wants a payback of two years or less, will he acquire the franchise?! Yes O No