# shown on pages 33 and 50 of Benetton’s annual report differ from one another (disregard everything beneath the line titled “income from operations”)?…

How do the formats of the income statements shown on pages 33 and 50 of BenettonÃ¢â‚¬â„¢s annual report differ from one another (disregard everything beneath the line titled Ã¢â‚¬Å“income from operationsÃ¢â‚¬Â)? Which expenses shown on page 50 appear to have been reclassified as variable selling costs on page 33? Why do you think cost of sales is included in the computation of contribution margin on page 33? Perform two separate computations of BenettonÃ¢â‚¬â„¢s break-even point in Euros. For the first computation, use data from 2003. For the second computation, use data from 2004. Why do the numbers that you computed differ from one another? What sales volume would have been necessary in 2004 for Benetton to attain a target income from operations of Ã¢â€šÂ¬300 million? Compute BenettonÃ¢â‚¬â„¢s margin of safety using data from 2003 and 2004. Why do your answers for the two years differ from one another? What is BenettonÃ¢â‚¬â„¢s degree of operating leverage in 2004? If BenettonÃ¢â‚¬â„¢s sales in 2004 had been 6% higher than what is shown in the annual report, what income from operations would the company have earned? What percentage increase in income from operations does this represent? What income from operations would Benetton have earned in 2004 if it had invested an additional Ã¢â€šÂ¬10 million in advertising and promotions and realized a 3% increase in sales? As an alternative, what income from operations would Benetton have earned if it not only invested an additional Ã¢â€šÂ¬10 million in advertising and promotions but also raised its sales commission rate to 6% of sales, thereby generating a 5% increase in sales? Which of these two scenarios would have been preferable for Benetton? Assume that total sales in 2004 remained unchanged at Ã¢â€šÂ¬1,686 million (as shown on pages 33 and 50); however, the Casual sector sales were Ã¢â€šÂ¬1,554 million, the Sportswear and Equipment sector sales were Ã¢â€šÂ¬45 million, and the Manufacturing and Other sector sales were Ã¢â€šÂ¬87 million. What income from operations would Benetton have earned with this sales mix? (Hint: look at pages 36 and 37 of the annual report.) Why is the income from operations under this scenario different from what is shown in the annual report?

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.