Saryed

Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Incorporated, to dispense frozen yoguit produce under The Yogurt Place name. He assembled the following information relating to the franchises

a$.$ A suitable location in a large shopping mall can be rented for $$4600$ per month.

c$.$ Based on similar outlets elsewhere. Mr$.$ Swanson estimates sales would tolal $$490\mathrm{.}000$ peryengred and whouldicost $208$ sales.

d$.$ Annual operating costs would include $$89\mathrm{.}000$ for salaries, $$5,400$ for insurance $$46$ o$00$ for utilties. and a commics on paid. The Yogurt Place Incorporated, of $13\mathrm{.}59$ of sales.

Required:

Prepare a contribution format income statement showing the expected net operating income each year from the franch se

$2-$a$.$ Compute the simple rate of return promised by the franchise.

$2-$b$.$ If Mr$.$ Swanson requires a simple rate of return of at least $20\%,$ should he acquire the franchise?

$3-$a$.$ Compute the payback period on this investment.

$3-$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.

Required $1$

Required $2A$

Required $2B$

Required $3A$

Required $38$

Prepare a contribution format income statement showing the expected net operating income each year from the franchise$-$

$\backslash$table$[[$The Yogurt Place, Incorporated$],[$Contribution Format Income Statement$],[$Variable expenses$]]$