Lannion and Co is engaged in providing and marketing a standard advice service Summarised results for the past two months reveal the following 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) S tate w...

Lannion and Co. is engaged in providing and marketing a standard advice service. Summarised results for the

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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) Sales revenue (£) Operating profit (£) 200 300 7,500 2,200 5,000 1,000

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) S tate why the business might find it useful to know its BEP.

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a The increase in output of 100 units ie from 200 to 300 gives rise to additional cost of 1300 ie 53...View the full answer

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Accounting and Finance An Introduction

ISBN: 978-1292088297

8th edition

Authors: Peter Atrill, Eddie McLaney

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Question Posted: May 30, 2018 02:16 AM

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