Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Incorporated, to dispense frozen yogut 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 a $17700 salvage value Straight-hine depreciation would be used, and the salvage value would be considered in computing deprectation c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total $440.000 per year ingredients wouid cost 20 s of sales. d Operating costs would include $84,000 per year for salarles, $4,900 per year for insurance, and $41,000 per year for utilbes. In addition, Mr. Swanson would nave to pay a commission to The Yogurt Place, incorporated, of 1458 of sales. Required: 1. Prepare a contrbution format income statement that shows the expected net operating income each year from the franchise outiet. 2-a. Compute the simple rate of return promised by the outet. 2-b. If Mr. Swanson requires a simple rate of return of at least 20%, should ne acquire the franchise? 3-a. Compute the payback period on the outiet. 3-b. If Mr Swanson wants a payback of three years or less, will the acquire the franchuse? Complete this question by entering vour answers in the tabs below. Prepare a contribution format incorne statement that shows the expected net operating income each vear from the franchise outlet