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Says Req 1 is not complete. Paul Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc., to dispense frozen yogurt products

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Says Req 1 is not complete.
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 $3,000 per month b. Remodeling and necessary equipment would cost $288,000. The equipment would have a 15-year Me and a $19.200 salvago value. Straight-line depreciation would be used, and the salvage value would be considered in computing depreciation, c. Based on similar outlets elsewhere, Mr. Swanson estimates that soles would total $330,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $73,000 per year for salaries, $3,800 per year for insurance, and $30,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 14.0% of sales. Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet 2-a. Compute the simple rate of return promised by the outlet 2.b. 1 Mr. Swanson requires a simple rate of return of at least 17%, should he acquire the franchise? 3-a. Compute the payback period on the outlet 3.b. 1 Mr. Swanson wants a payback of three years or less, will he acquire the franchise? Answer is not complete. Complete this question by entering your answers in the tabs below. Reg A Reg Reg 28 Reg 1 Req ZA Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet 4 of 5 15 Next > Next

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