Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Using the Tootsie Roll 2016 Annual Report answer the following questions :- You can find Tootsie Roll annual report in following link:- https://1drv.ms/b/s!AnCfB5fz9u5ZgpQ-FoeMvUNno4oDwQ 1. Name

Using the Tootsie Roll 2016 Annual Report answer the following questions :-

You can find Tootsie Roll annual report in following link:-

https://1drv.ms/b/s!AnCfB5fz9u5ZgpQ-FoeMvUNno4oDwQ

1. Name two competitors of Tootsie Roll

2. Compare and contrast the market caps of the two competitors named above with Tootsie Roll

3. 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?

4. Assume that 20% of Tootsie Roll's oper ting 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?

5. 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 breakevern point for operations, measured in sales dollars, over the last three years? What is the trend in the margin of safety?

6. Assuming that the total dollar amount of fixed costs remains the samne as in your computations for #4 above, how would operating income change if sales decline by 10%? How would operating income change if sales increase by 10%?

7. Assuming that the total dollar amount of fixed costs remains the same as in your computations for #5 above, how would operating income change if sales decline by 10%? How would operating income change if sales increase by 10%?

8. Prepare a memo to the CEO interpreting the results of the analyses for the most recent year. Discuss your key as e importance of those assumptions to the sumptions and th analysis.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Clinical Audit In Physiotherapy From Theory Into Practice

Authors: Sue Barnard MSc MCSP, Gayle Hartigan

1st Edition

075063779X, 978-0750637794

More Books

Students also viewed these Accounting questions

Question

Describe the data-preparation process.

Answered: 1 week ago