What must jon bikes selling price be

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Problem 1: Cafés Richard production volume is 250,000 units while the company's variable costs are $9 per unit and the fixed costs are $700,000. What must Jon's Bikes selling price be if he just wants to breakeven?

a) 11.8

b) 10.89

c) 8.26

d) 5.63

Problem 2: Which of the following statement is false about Equity share capital:

a) It's a source of permanent capital

b) Equity shareholders undertake the highest amount of risk

c) Equity shareholders are practically owners

d) The cost of ordinary shares is usually higher than that of debt

Reference no: EM132690617

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