The questions in this application are naturalized on the Benetton Group, a assembly headquartered in Italy and unreserved in the United States chiefly for one of its brands of custom apparel-United Colors of Benetton.
How do the formats of the allowance statements shown on pages 33 and 50 of Benetton’s annual relation dispute from one another (ignorance anything below the thread titled “allowance from operations”
Which expenses shown on page 50 answer to possess been reclassified as capricious selling absorbs on page 33?
Why do you gard the absorb of sales is interjacent in the deduction of subsidy loophole on page 33?
Perform two disunited deductions of Benetton’s break-even summit in euros. For the original deduction, use grounds from 2003. For the remedy deduction, use grounds from 2004. Why do the mass that you computed dispute from one another?
What sales bulk would possess been compulsory for 2004 for Benetton to master a target allowance from operations of €300 darling?
Compute Benetton’s loophole of insurance using grounds from 2003 and 2004. Why do your answers for the two years dispute from one another?
What is Benetton’s extent of frank leverage in 2004? If Benetton’s sales in 2004 had been 6% remarkable than what is shown in the annual relation, what allowance from operations would the assembly possess earned? What percentage growth in allowance from operations does this state?
What allowance from operations would Benetton possess earned in 2004 if it had invested an affixed €10 darling in advertising and promotions and realized a 3% growth in sales? As an resource, what allowance from operations would Benetton possess earned if it not solely invested an affixed €10 darling in advertising and promotions but also loud its sales office objurgate to 6% of sales, thereby generating a 5% growth in sales? Which of these two scenarios would possess been excellent for Benetton?
Assume that whole sales in 2004 remained unnatural at €1,686 darling (as shown on pages 33 and 50); besides, the Casual sector sales were €1,554 darling, the Sportswear and Equipment sector sales were €45million, and the Manufacturing and Other sector sales were €87 darling. What allowance from operations would Benetton possess earned after a while this sales mix? (Hint: contemplate at pages 36 and 37 of the annual relation. ) Why is the allowance from operations subordinate this scenario disputeent from what is shown in the annual relation?