Look at Tootsie Roll Industries Inc.'s most current annual report. Focus on the income statement, which Tootsie Roll titles Consolidated Statement of Earnings and Retained Earnings, and the notes following the financial statements. Answer the following questions in a clear and concise, professional business report. Use APA formatting.
• What is Tootsie Roll's Gross Profit Margin on product sales? On rent and royalty sales? On total sales?
• What would happen to Tootsie Roll's total gross margin if rent and royalty sales increased by 20%? Please show your work.
• Should Tootsie Roll pursue an increase in its rent and royalty sales? Why?
• What is Tootsie Roll's profit margin on net earnings?
• What is Tootsie Roll's earnings per share?
• According to note 1, how does Tootsie Roll recognize revenue?