Bentton Group

From the book: Managerial Accounting for Managers by Noreen, Brewer, and Garrison Research and Application 5-34 The inquiries in this activity depend on the Benetton Group, an organization headquartered in Italy and known in the United States principally for one of its brands of style attire United Colors of Benetton. To address the inquiries, you should download the Benetton Group’s 2004 Annual Report at www. benetton. com/financial specialists . You don't have to print this archive to address the inquiries. Required: 1. How do the organizations of the salary proclamations appeared on pages 33 and 50 of Benetton’s yearly report contrast from each other (dismiss everything underneath the line named â€Å"income from operations†)? Which costs appeared on page 50 seem to have been renamed as factor selling costs on page 33? 2. For what reason do you thing cost of deals is remembered for the calculation of commitment edge on page 33? 3. Perform two separate calculations of Benetton’s make back the initial investment point in euros. For the primary calculation, use information from 2003. For the subsequent calculation, use information from 2004. For what reason do the numbers that you registered contrast from each other? 4. What deals volume would have been vital in 2004 for Benetton to achieve an objective pay from activities of â‚ ¬300 million? 5. Process Benetton’s edge of security utilizing information from 2003 and 2004. For what reason do your responses for the two years contrast from each other? 6. What is Benetton’s level of working influence in 2004? On the off chance that Benetton’s deals in 2004 had been 6% higher than what is appeared in the yearly report, what salary from activities would the organization have earned? What rate increment in pay from activities does this speak to? 7. What pay from tasks would Benetton have earned in 2004 on the off chance that it had put an extra â‚ ¬10 million in publicizing and advancements and understood a 3% expansion in deals? As another option, what pay from tasks would Benetton have earned on the off chance that it not just put an extra â‚ ¬10 million in publicizing and advancements yet in addition raised its business bonus rate to 6% of deals, in this manner producing a 5% expansion in deals? Which of these two situations would have been ideal for Benetton? . Accept that all out deals in 2004 stayed unaltered at â‚ ¬1,686 million (as appeared on pages 33 and 50); nonetheless, the Casual part deals were â‚ ¬1,554 million, the Sportswear and Equipment segment deals were â‚ ¬45million, and the Manufacturing and Other area deals were â‚ ¬87 million. What pay from tasks would Benetton have earned with this business blend? (Indication: take a ga nder at pages 36 and 37 of the yearly report. ) Why is the pay from tasks under this situation not the same as what is appeared in the yearly report?