Lannion and Co. Is engaged in providing and marketing a standard advice service. Summarized results for the past two months reveal the following: Sales (units of the service) Sales revenue (€) Operating profit (€) October November 200 300 5.000 7.500 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.

Principles of Accounting Volume 1
19th Edition
ISBN:9781947172685
Author:OpenStax
Publisher:OpenStax
Chapter6: Merchandising Transactions
Section: Chapter Questions
Problem 19Q: The following is select account information for Sunrise Motors. Sales: $256,400; Sales Returns and...
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Lannion and Co. Is engaged in providing and marketing a standard advice service. Summarized results
for the past two months reveal the following:
Sales (units of the service)
Sales revenue (€)
Operating profit (€)
October
November
200
300
5.000
7.500
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.
Transcribed Image Text:Lannion and Co. Is engaged in providing and marketing a standard advice service. Summarized results for the past two months reveal the following: Sales (units of the service) Sales revenue (€) Operating profit (€) October November 200 300 5.000 7.500 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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