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 suitable location in a large shopping mall can be rented for $3,000 per month. remodeling and necessary equipment would cost $288,000. the equipment would have a 15-year life and a $19,200 salvage value. straight-line depreciation would be used, and the salvage value would be considered in computing depreciation. based on similar outlets elsewhere, mr. swanson estimates that sales would total $330,000 per year. ingredients would cost 20% of sales. 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. if 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. if mr. swanson wants a payback of three years or less, will he acquire the franchise?