At a recent staff meeting, the management of Guthold Gaming Technologies, Inc., was considering discontinuing the Evegi

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

Units of sales 85,000

Break-even units 100,000

Margin of safety in units 7,000

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

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Accounting

ISBN: 978-0324662962

23rd Edition

Authors: Jonathan E. Duchac, James M. Reeve, Carl S. Warren

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