Javellana Jessel G.

BSBA-OM 201A

Platinum Collection
Platinum Collection is a start-up company in the jewelry business. The owner desires to achieve a profit
of P500,000 by selling 2,000 pieces of their diamond rings. The fixed cost in acquiring their diamond is
P700,000 while the variable cost per diamond is P1,000.
A. Price per unit of diamond ring (10 points)
Answer
xp = vx + FC + Desired Profit
2,000 = (2,000) (1,000) + 700,000 + 500,000
2,000 = 2,000,000 + 700,000 + 500,000
2,000 = 3,200,000
P = 1,600