Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, incorporated, to dispense frozen yogurt products under The Yogurt Place name. Mr. Swonson has assembled the following information relating to the franchise: a. A suitoble location in a large shopping mall can be rented for $4,900 per month. b. Remodeling and necessary equipment would cost $402,000. The equipment would have a 20 year life and a $20,100 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing deprociation. c. Based on similat outlets eisewhere, Me. Swanson estimates that sales would total $520,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $92,000 per year for salaries, $5,700 per year for insurance, and $49,000 per year for utilites. In addition, Me, Swonson would have to pay a commission to The Yogurt Place, Incorporated, of 15.0% of sales. Required: 1. Prepare a contribution format inceme statement that shows the expected net operating income each yesr from the franchise outiet 2.a. Compute the simple rate of return promised by the outlet. 2.b. If Me. Swanson requires a simple rate of retum of at least 20%, should he acquire the franchise? 3.a. Compute the payback period on the outlet. 3.b. If Mc. Swanson wonts a payback of two years of less, will he acquire the franchise? Complete this question by entering your answers in the tabs below. Prepare a contribution format income statement that shows the expected net operating income each yeat from the franchise outlet. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outiet. Complete this question by entering your answers in the tabs below. Cornpute the simple rate of return promised by the outlet. (Round your answer to 1 decimal ploce.) Complete this question by entering your answers in the tabs below. If Mr. Swanson requires a simple rate of return of at least 20%, should he acquire the franchise? Complete this question by entering your answers in the tabs below. Compute the payback period on the outlet. (Round your answer to 1 decimat place.) Complete this question by entering your answers in the tabs below. If Mr. Swanson wants a payback of two years or less, will he acquire the franchise