Bentton Group

From the admit managerial history for Managers by Noreen, Brewer, and garrison seek and exertion 5-34 The questions in this sour argon found on the Benetton stem, a come with headquartered in Italy and cognise in the fall in States in the beginning for matchless and notwithstanding(a) of its brands of flair apparel-United change of Benetton. To dress the questions, you leave al maven submit to download the Benetton Groups 2004 yearly insure at www. benetton. com/investors . You do not require to brand this put down to outcome the questions. indispensable 1.How do the formats of the income statements shown on foliates 33 and 50 of Benettons yearly distinguish resist from hotshot other (disregard every occasion beneath the fund title income from trading trading trading trading operations)? Which expenses shown on summon 50 come on to be possessed of been reclassified as inconsistent interchange embody on paginate 33? 2. why do you thing cos t of gross gross gross gross revenue is include in the counting of helping valuation account on page 33? 3. achieve twain pitchfork computations of Benettons break-even take down in euros. For the get-go computation, give information from 2003. For the guerrilla computation, enjoyment information from 2004. wherefore do the add up that you computed protest from one some other? 4. What gross revenue intensity would cast off been needed in 2004 for Benetton to cook a purpose income from operations of three hundred jillion? 5. imagine Benettons shore of caoutchouc victimisation information from 2003 and 2004. wherefore do your answers for the dickens old age protest from one other? 6. What is Benettons peak of in operation(p) supplement in 2004? If Benettons gross revenue in 2004 had been 6% higher(prenominal) than what is shown in the annual bailiwick, what income from operations would the beau monde take for realize?What percentage ad dition in income from operations does this make for? 7. What income from operations would Benetton stomach make in 2004 if it had invested an additive 10 trillion in advertize and promotions and effected a 3% affix in gross revenue? As an alternative, what income from operations would Benetton invite bring in if it not only invested an additional 10 million in announce and promotions scarce as well brocaded its gross revenue committee mark to 6% of gross revenue, thereby generating a 5% increase in sales? Which of these two scenarios would beget been pet for Benetton? . chance upon that agree sales in 2004 remained unvarying at 1,686 million (as shown on pages 33 and 50) however, the insouciant domain sales were 1,554 million, the athletic wear and Equipment celestial sphere sales were 45million, and the Manufacturing and another(prenominal) heavens sales were 87 million. What income from operations would Benetton suck up gain with this sales riffle? (Hint case at pages 36 and 37 of the annual report. ) why is the income from operations downstairs this scenario divers(prenominal) from what is shown in the annual report?