Proctoring Enabled: MH Lab 4: Capital Budgeting Saved Help Save & Exit Subm 13 Joe Swanson has an opportunity to acquire a franchise from The Yogurt Place, Inc. to dispense frozen yogurt products under the name The Yogurt Place. Swanson has assembled the following information relating to the franchise: 01:28:34 a. A suitable location in a large shopping mall can be rented for $3,960 per month. b. Remodelling and necessary equipment would cost $347,500. The equipment would have a 15-year life and an $10,000 salvage value. Straight-line depreciation would be used. c. On the basis of similar outlets elsewhere, Swanson estimated that sales would total $312,000 per year. Ingredients would cost 20% of sales. d. Operating costs would include $68,000 per year for salaries, $6,000 per year for insurance, and $36,600 per year for utilities. In addition, Swanson would have to pay a commission to The Yogurt Place of 12.5% of sales. eBook Required: 1. Prepare a contribution format income statement that shows the expected net operating income each year from the franchise outlet. Is JOE SWANSON Income Statement Deduct Operating expenses Total operating expenses 13 of 13