The questions in this application are installed on the Benetton Group, a assembly headquartered in Italy and notorious in the United States chiefly for one of its brands of style apparel-United Colors of Benetton.
How do the formats of the allowance statements shown on pages 33 and 50 of Benetton’s annual fame vary from one another (oversight anything below the length titled “allowance from operations”
Which expenses shown on page 50 show to keep been reclassified as capricious selling requires on page 33?
Why do you judge the require of sales is comprised in the inference of donation edge on page 33?
Perform two disconnected inferences of Benetton’s break-even summit in euros. For the earliest inference, use postulates from 2003. For the succor inference, use postulates from 2004. Why do the aggregate that you computed vary from one another?
What sales body would keep been certain for 2004 for Benetton to acquire a target allowance from operations of €300 favorite?
Compute Benetton’s edge of insurance using postulates from 2003 and 2004. Why do your answers for the two years vary from one another?
What is Benetton’s quality of gratuitous leverage in 2004? If Benetton’s sales in 2004 had been 6% surpassing than what is shown in the annual fame, what allowance from operations would the assembly keep earned? What percentage acception in allowance from operations does this reproduce-exhibit?
What allowance from operations would Benetton keep earned in 2004 if it had invested an affixed €10 favorite in advertising and promotions and realized a 3% acception in sales? As an choice, what allowance from operations would Benetton keep earned if it not solely invested an affixed €10 favorite in advertising and promotions but too raised its sales trust trounce to 6% of sales, thereby generating a 5% acception in sales? Which of these two scenarios would keep been preferable for Benetton?
Assume that completion sales in 2004 remained unchanged at €1,686 favorite (as shown on pages 33 and 50); however, the Casual sector sales were €1,554 favorite, the Sportswear and Equipment sector sales were €45million, and the Manufacturing and Other sector sales were €87 favorite. What allowance from operations would Benetton keep earned delay this sales mix? (Hint: face at pages 36 and 37 of the annual fame. ) Why is the allowance from operations lower this scenario varyent from what is shown in the annual fame?