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

AppendixLO1