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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.
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