The following data (in millions) were adapted from recent financial statements of Tootsie Roll Industries Inc. (TR):

Sales .................................    $521

Cost of sales .....................    320

Net income .......................      68

Average total assets .......     915

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. Compute the return on assets for Tootsie Roll.

5. Using your answers to MBA 1-3, compare the markup percentages and return on assets for Hershey and Tootsie Roll.