Tim, the sales manager, comments that when he compared the projected breakeven sales with the real numbers, sometimes a greater number of units were required to break even, especially in the months where demand was low and he had to work hard to push sales. Linda, the acquisitions manager who oversees the purchases of inventory, mentions that sometimes fewer than the projected units were needed to reach the breakeven point, especially when demand was high and sales exceeded expectations. Prepare a brief report of about 200-300 words, that explains the observations of Tim and Linda.

Hint: Consider the limitations of ratio analysis