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.