State why the business might find it useful to know its bep

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Reference no: EM13856717

Lannion and Co. is engaged in providing and marketing a standard advice service. Summarized results for the past two months reveal the following:


October

November

Sales (units of the service)

200

300

Sales revenue (£)

5,000

7,500

Operating profit (£)

1,000

2,200

There were no price changes of any description during these two months. Required:

(a) Deduce the BEP (in units of the service) for Lannion and Co.

(b) State why the business might find it useful to know its BEP.

Reference no: EM13856717

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