FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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) 200 300
Sales revenue (in pounds) 5000 7500
Operating profits (in pounds) 1000 2200

There were no price changes of any description during these two months.

(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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting and Finance An Introduction

Accounting and Finance An Introduction

Authors: Peter Atrill, Eddie McLaney

8th edition

129208829X, 1292088297, 978-1292088297

More Books

Students also viewed these Accounting questions

Question

★★★★★
Williams Manufacturing uses scrap metal to produce various tools, such as drill bits, hammer heads, saw blades, and nails. The CEO has asked you to analyze the saw blades division to determine asset...

Answered: 1 week ago

Question

★★★★★
How do features of ones language shape the ability to think about certain concepts?

Answered: 1 week ago

Question

★★★★★
During 2012, Crop-Paper-Scissors, a craft store, changed to the LIFO method of accounting for inventory. Suppose that during 2013, Crop-Paper-Scissors switches back to the FIFO method and the...

Answered: 1 week ago

Question

★★★★★
Travis Services is an office cleaning company. Consider Travis Services' transactions during its first month of operations, April, as described: Stanley Travis invested $18,680 in cash to form Travis...

Answered: 1 week ago

Question

★★★★★
The one-year futures price on a stock-index portfolio is 812, the level of the stock index currently is 800, the one-year risk-free interest rate is 3 percent, and the year-end dividend that will be...

Answered: 1 week ago

Question

★★★★★
Find five interesting facts in Tables 1.4 and 1.5. DATA FROM TABLE 1.5 TABLE 1.4 Broad Categories of Exports of Selected Countries, 2010 SITC Code Product United United States Germany Japan China...

Answered: 1 week ago

Question

★★★★★
Use Table 1.1 to find three countries that have gone from being mostly closed to being open from 1980 to 2009. Also, find three countries where the reverse has happened. What has been the implication...

Answered: 1 week ago

Question

★★★★★
Use the data in Table 6.7 to compare U.S. protectionist policies with those of Japan. In what sectors are protection levels relatively equal? Where do they differ? Try to explain these patterns....

Answered: 1 week ago

Question

★★★★★
Customer demand for some finished good is forecast at 1,000 units for January, 2,000 units for February, and 3,000 units for March. If the company that produces this finished good has nothing in...

Answered: 1 week ago

Question

★★★★★
Consider the random phasor sum of Section 2.9 with the single change that the phases \(\phi_{k}\) are uniformly distributed on \((-\pi / 2, \pi / 2)\). Find the following quantities: \(\bar{r},...

Answered: 1 week ago

Previous Question Next Question