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 basically for one of its brands of design clothing United Colors of Benetton. To respond to 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 report to respond to the inquiries. Required: 1. How do the arrangements of the pay articulations appeared on pages 33 and 50 of Benetton’s yearly report contrast from each other (ignore 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 earn back the original investment point in euros. For the main calculation, use information from 2003. For the subsequent calculation, use information from 2004. For what reason do the numbers that you figured vary from each other? 4. What deals volume would have been important in 2004 for Benetton to accomplish an objective salary from activities of â‚ ¬300 million? 5. Process Benetton’s edge of wellbeing utilizing information from 2003 and 2004. For what reason do your responses for the two years vary 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 pay from tasks would the organization have earned? What rate increment in pay from activities does this speak to? 7. What salary from activities 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 activities would Benetton have earned on the off chance that it not just put an extra â‚ ¬10 million in publicizing and advancements yet additionally raised its business bonus rate to 6% of deals, in this manner creating a 5% expansion in deals? Which of these two situations would have been best for Benetton? . Accept that all out deals in 2004 stayed unaltered at â‚ ¬1,686 million (as appeared on pages 33 and 50); notwithstanding, the Casual area deals were â‚ ¬1,554 million, the Sportswear and Equipment segment deals were â‚ ¬45million, and the Manufacturing and Other part deals were â‚ ¬87 million. What pay from tasks would Benetton have earned with this business blend? (Indic ation: take a gander at pages 36 and 37 of the yearly report. ) Why is the pay from tasks under this situation unique in relation to what is appeared in the yearly report?