At a recent staff meeting, the management of Hom Technology Products was considering discontinuing the Hercules line of laptop computers from the product line. The chief financial analyst reported the following current monthly data for the Hercules:
|
Units of sales |
32,000 |
|
Break even units |
36,800 |
|
Margin of safety in units |
4,800 |
For what reason would you question the validity of these data?