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Saved 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.

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Saved 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 $5,100 per month. b. Remodeling and necessary equipment would cost $414,000. The equipment would have a 15-year life and an $27600 salvage value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. $540,000 per year. Ingredients would cost 20% of sales. insurance, and $51,000 per year for utilities. In addition, Mr. Swanson would have to c. Based on similar outlets elsewhere, Mr. Swanson estimates that sales would total d. Operating costs would include $94.000 per year for salaries, $5,900 per year for pay a commission to The Yogurt Place, Inc., of 16.0% of sales

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