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.
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.
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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Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F7dd80b61-3766-4d44-94b5-6f408604c6dd%2Fb2e4ae9c-a853-4fca-9e45-e4d462f2617b%2Fnxlmhd_processed.png&w=3840&q=75)
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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