Lester corporation produces sweatshirts for a selling price of $19.99. their variable unit cost $12.50. assigning a fixed cost of 18,725 what is lester’s break-even point?

To solve this, we are going to use the break-even point formula: 
where
is the break even point in units
is the fixed cost.
is the sale price per unit.
is the variable cost per unit. 

We know form our problem that the selling price of the sweatshirts is $19.99, so . We also know that their variable unit cost $12.50, so . Finally, we also know that the fixed cost  is $18,725, so . Lets replace the values in our formula to find :





We can conclude that the break-even point of Lester corporation is 2.5 units.

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