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# 3.Perform two separate computations of Benettons break-even

### Resolved Question:

3.Perform two separate computations of Benetton’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 you compute differ from one another?

7. What income from operations would Benetton have earned in 2004 if it had invested an addition €10 million in advertising promotions and realized a 3% increase in sales? As an alternative what income from operations would Benetton have earned if it not only invested as additional €10 million advertising promotions but also rasied it’s commission rates to 6% of sales, thereby generating 5% increase in sales? Which of these two scenarios would have been preferable for Benetton?
Submitted: 6 years ago.
Category: Homework
Expert:  Neo replied 6 years ago.

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Neo, Tutor
Category: Homework
Satisfied Customers: 12101
Experience: BS Accounting
Customer: replied 6 years ago.
Can #3 be answered by the equation method?
Expert:  Neo replied 6 years ago.
I do not think we can because the data does not provide as to how many units of their products were sold.
Customer: replied 6 years ago.

That't what had me going crazy! I though I had to find the selling unit price and couldn't figure it out. I waisted sooooo much time for nothing, all because it wasn't given.

Thank you soo much for your help!!

Expert:  Neo replied 6 years ago.
You are most welcome! :)

Thank you so much, too. :)

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