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 $3,500 per month. b. Remodeling and necessary equipment would cost $318,000. The equipment would have a 20-year life and a $15,900 salvage 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 sales would total $380,000 per year. Ingredients would cost 20% of d. Operating costs would include $78,000 per year for salaries, $4,300 per year for Insurance, and $35,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 11.5% of sales. 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. 2-6. If Mr. Swanson requires a simple rate of return of at least 23%, should he acquire the franchise? 3-a. Compute the payback period on the outlet. 3-5. If Mr. Swanson wants a payback of three years or less, will he acquire the franchise? Complete this question by entering your answers in the tabs below. Req 1 Reg 2A Req 28 Req 3A Reg 38 Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. The Yogurt Place, Inc. Contribution Format Income Statement Variable expenses: Fixed expenses