Lannion and co is engaged in providing and marketing a, Management Theories

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Lannion and co is engaged in providing and marketing a

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

Sales (units of the service) Sales revenue (£) Operating profit (£)

October 200 5,000 1,000

November 300 7,500 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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