관리회계 베네통 CVP분석(영문)

관리회계 베네통 CVP분석(영문) [관리회계] 베네통 CVP분석(영문).docx 목차 Index 1. Industry characteristics 2. Benetton 3. CVP analysis 4. Textbook questions & answers 5. Conclusion 6. Appendix 본문 (2) Why do you think cost of sales is included in the computation of contribution margin on page 33? Looking at Benetton’s reclassified and more detailed statement of income on page 50, one will notice that the majority of its cost of sales is from material & inventories (47.2%) and outsourcing work to subcontracted companies (36.6%). This would mean that most of its production costs are variable costs, since Benetton would only purchase material and outsource work if customers demand Benetton’s products. Furthermore, contribution margin, as defined by the textbook, is “the amount remaining from sales revenues after variable expenses have been deducted”. As a result, Benetton’s production costs and its variable selling costs (sales commission and delivery & transportation) are needed to compute the contribution margin. (3) What are the contribution margin and breakeven point of 2003 and 2004? Is there any difference between breakeven point of 2003 and 2004? If there is any difference, what is the reason? Millions of euro20042003 Revenues1,686 1,859 Cost of sales(929)(1,049) Gross operating income757 810 Variable selling costs(104)(114) Contribution Margin653 696 General and administrative expenses(436)(464) Income from operations217 232 Contribution Margin % of 2004 can be computed as (653 (CM))/(1,686 (SALES)) = 38.73% Contribution Margin % of 2003 can be computed as (696 (CM))/(1,859 (SALES)) = 37.43% Then Break-even point of each year’s sales can be computed by (FIXED COST)/(CM %). Therefore, Break-even point of 2004 is (436 )/0.3873 = €1125.74 and Break-even point of 2003 is 464/0.3743 = €1239.64 There’s a difference between BEP of 2004 and 2003 because of its rate between contribution margin and fixed cost. Low contribution margin ratio and large fixed costs lead to larger number of BEP. In this case, as the size of fixed cost was relatively larger than contribution margin in 2003, BEP of 2003 was larger than that of 2004. (4) What sales volume would have been necessary in 2004 for Benetton to attain a target income from operations of 300 million euro? 본문내용 ysis 4. Textbook questions & answers 5. Conclusion 6. Appendix 1. Industry Characteristics The Benetton group works in clothing and fashion industry. We can find out 5 characteristics of clothing and fashion industry. First, it is technology and knowledge intensive industry as well as labor intensive industry. In the past, clothing industry was regarded as just labor intensive industry but it ha