LVMH Group is a French domiciled company known for Dior, Givenchy, Louis Vuitton, and many other fashion brands. LVMHs operating segment revenues, operating income, and depreciation and amortization expenses for a recent year are as follows (in millions of euros):

		Wine and Spirits		Fashion and Leather Goods		Perfumes and Cosmetics		Watches and Jewelry		Selective Retailing
Sales		3,973		10,828		3,916		2,782		312
Operating income		1,147		3,189		415		283		(162)
Depreciation and
amortization expense		119		555		149		171		41

a. Prepare a vertical analysis of the segment sales to total sales. (Round to nearest whole percent.)

Segment		Sales		Segment Sales as a Percent of Total Sales
Wine and Spirits		3,973		%
Fashion and Leather Goods		10,828		%
Perfumes and Cosmetics		3,916		%
Watches and Jewelry		2,782		%
Selective Retailing		312		%
Total sales		21,811		%

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Incorrect

b. Based on the vertical analysis, which is the largest segment?

1. Fashion and Leather Goods
2. Wine and Spirits
3. Perfumes and Cosmetics
4. Watches and Jewelry
5. Selective Retailing
6. 1

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Correct

c. Compute (1) EBITDA and (2) EBITDA as a percent of sales (EBITDA margin) for each segment. (Round to nearest whole percent. For those boxes in which you must enter subtractive or negative numbers use a minus sign.)

		Wine and Spirits		Fashion and Leather Goods		Perfumes and Cosmetics		Watches and Jewelry		Selective Retailing
EBITDA
EBITDA as a percent of sales		%		%		%		%		%