The following data (in millions) were adapted from the December 31, 2008, financial statements of Tootsie Roll Industries Inc.:

Sales................................... $496

Cost of goods sold............. 334

Net income........................... 39

1. What is Tootsie Roll’s percent of the cost of sales to sales? Round to one decimal place.

2. The percent a company adds to its cost of sales to determine selling price is called a markup. What is Tootsie Roll’s markup percent? Round to one decimal place.

3. What is the percentage of net income to sales for Tootsie Roll? Round to one decimal place.

4. Compare your answer to (3) with that of The Hershey Company in Activity 1-6. What are your conclusions?