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 18%, should he acquire the franchise? 3-a. compute the payback period on the outlet. 3-b. if mr. swanson wants a payback of two years or less, will he acquire the franchise?

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east westsales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 )the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss) of: multiple choice$91,900$(64,100)$(142,000)$(50,100)