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Lannion and Co. is engaged in providing and marketing a standard advice service. Summarised results...

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Accounting

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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