Using the Tootsie Roll 2018 Annual Report answer the following questions

1. 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?

2- Assume that 20% of Tootsie Rolls 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?

3. Assume that 60% of Tootsie Rolls 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?