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Lannion and co is engaged in providing and marketing a

Question: Lannion and Co. is engaged in providing and marketing a standard advice service. Summarised 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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Accounting Basics: Lannion and co is engaged in providing and marketing a

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