Churchill Mews Incorporated Finding the Break-Even Point
Churchill Mews Incorporated provides a single service. The business results for the pasttwo months are as follows:
	Dec-14	Jan-15
Sales(units of the service)	4,000	4,960
Sales Revenue (US$)	200,000	248,000
Operating profit (US$)	80,000	118,400
There were no changes, of any description, in selling prices or costs over the two months.
Required:
a) What is the break-even point for the business activities?
b) In your own words, define the term"Break-Even Point"
c) How is the Break-Even Point (BEP) calculated?
d) In your own words, explain why the Break-Even Point (BEP) tends to be useful.