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Using the attached Morningstar Data, 2019 annual report for Tootsie Roll and Google answer the following questions. Assume that 20% of Tootsie Rolls operating expenses

Using the attached Morningstar Data, 2019 annual report for Tootsie Roll and Google answer the following questions.

  1. Assume that 20% of Tootsie Rolls operating expenses are fixed.
    1. What is the trend in the contribution margin ratio over the last 5 years?
    2. What is the trend in the breakeven point for operations, measured in sales dollars, over the last 5 years?

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-995,000 0 TR_Income Statement_Annual_As_Originally_Reported 2 Gross Profit 3 Total Revenue 4 Business Revenue 5 Other Revenue 5 Cost of Revenue Cost of Goods and Services Rent and Landing Fees, Cost of Revenue 3 Operating Income/Expenses 0 Selling, General and Administrative Expenses 1 Total Operating Profit/Loss 2 Non-Operating Income/Expenses, Total 3 Total Net Finance Income/Expense 4 Net Interest Income/Expense 5 Interest Expense Net of Capitalized Interest 6 Interest Income 7 Net Investment Income 8 Gain/Loss on Investments and Other Financial Instruments 9 Gain/Loss on Foreign Exchange 0 Income from Associates, Joint Ventures and Other Participating Interests 1 Other Income/Expense, Non-Operating 2 Irregular Income/Expenses 23 Merger and Acquisition Income/Expense 24 Impairment/Write Off/Write Down of Other Assets 25 Impairment/Write Off/ Write Down of Capital Assets 26 Other Irregular Income/Expenses E7 Pretax Income E8 Provision for Income Tax 9 Net Income from Continuing Operations 0 Net Income after Extraordinary Items and Discontinued Operations 1 Non-Controlling/Minority Interests 2 Net Income after Non-Controlling/Minority Interests 3 Net Income Available to Common Stockholders 4 Diluted Net Income Available to Common Stockholders 5 Reported Total Revenue 6 Reported Total Operating Profit/Loss #7 Reported Effective Tax Rate 8 Reported Normalized Operating Profit 9 Basic EPS -0 Diluted EPS 1 Basic WASO -2 Diluted WASO -3 Fiscal year ends in Dec 31 USD -4 2010 2011 2012 2013 2014 2015 2016 2017 172,047,000 166,242,000 183,321,000 191,486,000 201,645,000 199,133,000 199,791,000 192,393,000 188,173,000 197,016,000 186,487,000 2018 2019 TTM 521,448,000 532,505,000 549,870,000 543,383,000 543,525,000 540,112,000 521,100,000 519,289,000 518,920,000 527,113,000 502,586,000 521,448,000 532,505,000 545,985,000 539,627,000 539,895,000 536,692,000 517,373,000 515,674,000 515,251,000 523,616,000 499,175,000 3,885,000 3,756,000 3,630,000 3,420,000 3,727,000 -349,401,000-366,263,000-366,549,000-351,897,000 -341,880,000 -340,979,000 -321,309,000 -326,896,000-330,747,000-330,097,000-316,099,000 3,615,000 3,669,000 3,497,000 3,411,000 -365,573,000-350,960,000-340,933,000-340,090,000-320,290,000 325,924,000-329,880,000 -329,102,000 315,123,000 -976,000 -937,000 -947,000 -889,000 -1,019,000 -972,000 -106,316,000 -108,276,000 -113,842,000 -119,133,000 -117,722,000 -108,051,000-107,377,000-120,977,000 -117,691,000 -127,802,000 -114,309,000 -867,000 -976,000 -106,316,000 -108,276,000-113,842,000 -119,133,000 -117,722,000 -108,051,000 -107,377,000 -120,977,000 -117,691,000 -127,802,000 -114,309,000 65,731,000' 57,966,000' 69,479,000 72,353,000' 83,923,000' 91,082,000 92,414,000' 71,416,000' 70,482,000 69,214,000' 72,178,000 8,358,000 2,946,000 4,685,000 12,130,000 7,371,000 1,496,000 5,498,000 13,145,000 737,000 2,724,000 16,190,000 11,353,000 966,000 1.232.000 1,353,000 1,483,000 1,345.000 2,025,000 2,707,000 3,354,000 737,000 966.000 1,232,000 4,203,000 1,353,000 1.483.000 1,345,000 2,025,000 2,707,000 -142.000 -121,000 3,354,000 4,203,000 -137,000 -92.000 -99.000 -76,000 -105,000 - 144,000 879.000 -181,000 -220,000 1,087,000 1,369,000 1,445.000 1,582,000 1,421,000 2,130.000 2,851.000 -342,000 3,535,000 1,706,000 4,039,000 4,423,000 8,831,000 4,040,000 23,000 3,320,000 10,236,000 -1,762,000 10,759,000 - 198,000 4,616,000 10,588,000 4,901.000 1,450,000 4,275,000 9.977,000 -1,103,000 11,292,000 2,098,000 442.000 -790,000 -861,000 -1,427,000 -955.000 259.000 -659,000 -342,000 -194,000 -1.019,000 -533,000 -967,000 0 264,000 2,921,000 27,000 128,000 153,000 7,963,000 202.000 274,000 -850,000 1,132,000 1,228,000 3,609,000 -975,000 1,821,000 07 0 1,821,000 01 0 -850,000 -975,000 07 0 0 0 7,963,000 274,000 74,089,000 60,912,000 74,164, 84,483,000 91,294,000'92,578,00 -20,375,000 97,912,000 84,561,000' 73,20 - 16,974,000 -22,160,000 -23,634,000 -28,434,000 -26,451,000 30,593,000 3,907,000 00' 85,404,000 83,531,000 53,714,000 43,938,000' 52,004,000' 60,849,000 - 16,401,000 -20,565,000 -19,789,000 62,860,000' 66,127,000 67,319,000' 80,654,000 52,004,000 60,849,000 56,805,000 64,839,000' 63,742,000 62,860,000' 66,127,000 67,319,000 80,654,000 56,805,000 64,839,000 63,742,000 438,000 -38,000 191,000 53,714,000'43,938,000' 52,004,000 60,849,000 63,298,000' 66,089,000 67,510,000'80,864,000 56,893,000 64,920,000' 63,779,000 210,000 88,000 81,000 37,000 53,714,000'43,938,000' 52,004,000 60,849,000 63,298,000' 66,089,000 67,510,000'80,864,000 56,893,000 64,920,000' 63,779,000 53,714,000 43,938,000 52,004,000 60,849,000 63,298,000 66,089,000 67,510,000 80,864,000 56,893,000 64,920,000 63,779,000 521,448,000 532,505,000 549,870,000 543,383,000 543,525,000 540,112,000 521,100,000 519,289,000 518,920,000 527,113,000 502,586,000 65,731,000 57,966,000' 69,479,000 72,353,000' 83,923,000 91,082,000 92,414,000' 71,416,000' 70,482,000' 69,214,000 72,178,000 0 0 0 07 0 07 07 07 68,074,000' 57,995,000' 74,095,000 82,941,000' 88,824,000'92,532,000 96,689,000' 81,393,000' 69,379,000 07 0 0.72 0.60 0.72 0.85 0.91 0.96 0.99 1.217 0.72 0.86 0.96 0.95 0.857 0.99 74,368,157' 73,335,853' 72,245,250 71,206,114' 70,207,956' 69,152,386' 68,010,235' 67,026,601 66,142,480 67,438,220 66,996,720 1.217 0.86 0.96 0.95 74.368.157 73,335,853' 72,245,250' 71,206,114' 70,207,956' 69,152,386 68,010,235' 67,026,601 66,142,480 67.438.220' 66,996,720 0.60 0.72 0.91 0.96 -995,000 0 TR_Income Statement_Annual_As_Originally_Reported 2 Gross Profit 3 Total Revenue 4 Business Revenue 5 Other Revenue 5 Cost of Revenue Cost of Goods and Services Rent and Landing Fees, Cost of Revenue 3 Operating Income/Expenses 0 Selling, General and Administrative Expenses 1 Total Operating Profit/Loss 2 Non-Operating Income/Expenses, Total 3 Total Net Finance Income/Expense 4 Net Interest Income/Expense 5 Interest Expense Net of Capitalized Interest 6 Interest Income 7 Net Investment Income 8 Gain/Loss on Investments and Other Financial Instruments 9 Gain/Loss on Foreign Exchange 0 Income from Associates, Joint Ventures and Other Participating Interests 1 Other Income/Expense, Non-Operating 2 Irregular Income/Expenses 23 Merger and Acquisition Income/Expense 24 Impairment/Write Off/Write Down of Other Assets 25 Impairment/Write Off/ Write Down of Capital Assets 26 Other Irregular Income/Expenses E7 Pretax Income E8 Provision for Income Tax 9 Net Income from Continuing Operations 0 Net Income after Extraordinary Items and Discontinued Operations 1 Non-Controlling/Minority Interests 2 Net Income after Non-Controlling/Minority Interests 3 Net Income Available to Common Stockholders 4 Diluted Net Income Available to Common Stockholders 5 Reported Total Revenue 6 Reported Total Operating Profit/Loss #7 Reported Effective Tax Rate 8 Reported Normalized Operating Profit 9 Basic EPS -0 Diluted EPS 1 Basic WASO -2 Diluted WASO -3 Fiscal year ends in Dec 31 USD -4 2010 2011 2012 2013 2014 2015 2016 2017 172,047,000 166,242,000 183,321,000 191,486,000 201,645,000 199,133,000 199,791,000 192,393,000 188,173,000 197,016,000 186,487,000 2018 2019 TTM 521,448,000 532,505,000 549,870,000 543,383,000 543,525,000 540,112,000 521,100,000 519,289,000 518,920,000 527,113,000 502,586,000 521,448,000 532,505,000 545,985,000 539,627,000 539,895,000 536,692,000 517,373,000 515,674,000 515,251,000 523,616,000 499,175,000 3,885,000 3,756,000 3,630,000 3,420,000 3,727,000 -349,401,000-366,263,000-366,549,000-351,897,000 -341,880,000 -340,979,000 -321,309,000 -326,896,000-330,747,000-330,097,000-316,099,000 3,615,000 3,669,000 3,497,000 3,411,000 -365,573,000-350,960,000-340,933,000-340,090,000-320,290,000 325,924,000-329,880,000 -329,102,000 315,123,000 -976,000 -937,000 -947,000 -889,000 -1,019,000 -972,000 -106,316,000 -108,276,000 -113,842,000 -119,133,000 -117,722,000 -108,051,000-107,377,000-120,977,000 -117,691,000 -127,802,000 -114,309,000 -867,000 -976,000 -106,316,000 -108,276,000-113,842,000 -119,133,000 -117,722,000 -108,051,000 -107,377,000 -120,977,000 -117,691,000 -127,802,000 -114,309,000 65,731,000' 57,966,000' 69,479,000 72,353,000' 83,923,000' 91,082,000 92,414,000' 71,416,000' 70,482,000 69,214,000' 72,178,000 8,358,000 2,946,000 4,685,000 12,130,000 7,371,000 1,496,000 5,498,000 13,145,000 737,000 2,724,000 16,190,000 11,353,000 966,000 1.232.000 1,353,000 1,483,000 1,345.000 2,025,000 2,707,000 3,354,000 737,000 966.000 1,232,000 4,203,000 1,353,000 1.483.000 1,345,000 2,025,000 2,707,000 -142.000 -121,000 3,354,000 4,203,000 -137,000 -92.000 -99.000 -76,000 -105,000 - 144,000 879.000 -181,000 -220,000 1,087,000 1,369,000 1,445.000 1,582,000 1,421,000 2,130.000 2,851.000 -342,000 3,535,000 1,706,000 4,039,000 4,423,000 8,831,000 4,040,000 23,000 3,320,000 10,236,000 -1,762,000 10,759,000 - 198,000 4,616,000 10,588,000 4,901.000 1,450,000 4,275,000 9.977,000 -1,103,000 11,292,000 2,098,000 442.000 -790,000 -861,000 -1,427,000 -955.000 259.000 -659,000 -342,000 -194,000 -1.019,000 -533,000 -967,000 0 264,000 2,921,000 27,000 128,000 153,000 7,963,000 202.000 274,000 -850,000 1,132,000 1,228,000 3,609,000 -975,000 1,821,000 07 0 1,821,000 01 0 -850,000 -975,000 07 0 0 0 7,963,000 274,000 74,089,000 60,912,000 74,164, 84,483,000 91,294,000'92,578,00 -20,375,000 97,912,000 84,561,000' 73,20 - 16,974,000 -22,160,000 -23,634,000 -28,434,000 -26,451,000 30,593,000 3,907,000 00' 85,404,000 83,531,000 53,714,000 43,938,000' 52,004,000' 60,849,000 - 16,401,000 -20,565,000 -19,789,000 62,860,000' 66,127,000 67,319,000' 80,654,000 52,004,000 60,849,000 56,805,000 64,839,000' 63,742,000 62,860,000' 66,127,000 67,319,000 80,654,000 56,805,000 64,839,000 63,742,000 438,000 -38,000 191,000 53,714,000'43,938,000' 52,004,000 60,849,000 63,298,000' 66,089,000 67,510,000'80,864,000 56,893,000 64,920,000' 63,779,000 210,000 88,000 81,000 37,000 53,714,000'43,938,000' 52,004,000 60,849,000 63,298,000' 66,089,000 67,510,000'80,864,000 56,893,000 64,920,000' 63,779,000 53,714,000 43,938,000 52,004,000 60,849,000 63,298,000 66,089,000 67,510,000 80,864,000 56,893,000 64,920,000 63,779,000 521,448,000 532,505,000 549,870,000 543,383,000 543,525,000 540,112,000 521,100,000 519,289,000 518,920,000 527,113,000 502,586,000 65,731,000 57,966,000' 69,479,000 72,353,000' 83,923,000 91,082,000 92,414,000' 71,416,000' 70,482,000' 69,214,000 72,178,000 0 0 0 07 0 07 07 07 68,074,000' 57,995,000' 74,095,000 82,941,000' 88,824,000'92,532,000 96,689,000' 81,393,000' 69,379,000 07 0 0.72 0.60 0.72 0.85 0.91 0.96 0.99 1.217 0.72 0.86 0.96 0.95 0.857 0.99 74,368,157' 73,335,853' 72,245,250 71,206,114' 70,207,956' 69,152,386' 68,010,235' 67,026,601 66,142,480 67,438,220 66,996,720 1.217 0.86 0.96 0.95 74.368.157 73,335,853' 72,245,250' 71,206,114' 70,207,956' 69,152,386 68,010,235' 67,026,601 66,142,480 67.438.220' 66,996,720 0.60 0.72 0.91 0.96

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