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State why the business might find it useful to know its bep

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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 (in pounds)

5000

7500

Operating profits (in pounds)

1000

2200

There were no price changes of any description during these two months.

(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.

Reference no: EM133151800

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