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Name two competitors of Tootsie Roll Compare and contrast the market caps of the two competitors named above with Tootsie Roll Consider each expense on
- Name two competitors of Tootsie Roll
- Compare and contrast the market caps of the two competitors named above with Tootsie Roll
- Consider each expense on Tootsie Rolls income statement. Is this expense mostly fixed, or mostly variable? What assumptions did you make in determining whether the expense was mostly fixed or variable?
- Assume that 20% of Tootsie Roll's operating expenses are fixed. What is the trend in the contribution margin ratio over the last three years? What is the trend in the breakeven point for operations, measured in sales dollars, over the last three years? What is the trend in the margin of safety?
- Assume that 60% of Tootsie Roll's operating expenses are fixed. What is the trend in the contribution margin ratio over the last three years? What is the trend in the breakeven point for operations, measured in sales dollars, over the last three years? What is the trend in the margin of safety?
- Assuming that the total dollar amount of fixed costs remains the same as in your computations for #4above, how would operating income change if sales decline by 10%? How would operating income change if sales increase by 10%?
- Assuming that the total dollar amount of fixed costs remains the same as in your computations for #5above, how would operating income change if sales decline by 10%? How would operating income change if sales increase by 10%?
- Prepare a memo to the CEO interpreting the results of the analyses for the most recent year. Discuss your key assumptions and the importance of those assumptions to the analysis. (80 points)
https://bblearn.uidaho.edu/bbcswebdav/pid-1998517-dt-content-rid-26088113_1/courses/201910_35278/Morningstar%2010%20year%20info.pdf
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