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 $3,300 per month b. Remodeling and necessary equipment would cost $306,000. The equipment would have a 15-year life and an $20,400 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 $360,000 per year. d. Operating costs would include $76,000 per year for salaries, $4,100 per year for insurance, and $33,000 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 PAUL SWANSON Contribution Format Income Statement Variable expenses Sellng and administrative expenses