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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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