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