# Problem 13-19 A Saved Help Save & Exit Submit Check my work Paul Swanson has an opportunity to…

Problem 13-19 A Saved Help Save & Exit Submit Check my work 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: points eBook a. A suitable location in a large shopping mall can be rented for $4,100 per month. b. Remodeling and necessary equipment would cost $354,000. The equipment would have a 20-year life and a $17,700 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 $440,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $84,000 per year for salaries, $4,900 per year for insurance, and $41,000 per year for utilities. In addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 14.5% of sales, Print References 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 20%, 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? Problem 13-19 0 Saved Complete this question by entering your answers in the tabs below. Reg 1 Req 2A Req 2B Req ЗА Req 3B 10 points Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. eBook The Yogurt Place, Inc., Contribution Format Income Statement Print References Variable expenses: Fixed expenses: Problem 13-19 Saved addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 14.5% of sales. points Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise o 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 20%, 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? eBook Print Complete this question by entering your answers in the tabs below. References Req 1 Req 2A Reg 2A Reg 28 Reg 3A Req 3B Compute the simple rate of return promised by the outlet. (Round percentage answer to 1 decimal place.) Simple rate of return < Req1 Req 2B> Problem 13-19 Saved addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 14.5% of sales. 10 points Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the 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 20%, 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? eBook Print Complete this question by entering your answers in the tabs below. References Req 1 Req 2A Req 2B Req 3A Req 3B If Mr. Swanson requires a simple rate of return of at least 20%, should he acquire the franchise? Yes O No < Req 2A Req 3A > Problem 13-19 Saved addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 14.5% of sales. points 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 20%, 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? eBook Print Complete this question by entering your answers in the tabs below. References Req1 Req ZA Req 2B Req 3A Req 3B Compute the payback period on the outlet. (Round your answer to 1 decimal place.) Payback period years < Req 2B Req3B > Problem 13-19 Saved addition, Mr. Swanson would have to pay a commission to The Yogurt Place, Inc., of 14.5% of sales. points Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise o 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 20%, 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? eBook Print Complete this question by entering your answers in the tabs below. References Req 1 Req 2A Req 2B Req 3A Req 3B If Mr. Swanson wants a payback of three years or less, will he acquire the franchise? Yes ONO < Req 3A Req3B >