Problem - Break-even and Margin of Safety Relationships

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Problem - Break-even and margin of safety relationships

At a recent staff meeting, the management of Rocket Technologies, Inc., was considering discontinuing the Maestro line of electronic games from the product line. The chief financial analyst reported the following current monthly data for the Maestro:

Units of sales 200,000

Break-even units 225,000

Margin of safety in units 14,000

Required - For what reason would you question the validity of these data?

Reference no: EM132685718

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