Your parents heard about the success of your business and they want to help you out. Suppose they want to give you an additional $300 to put toward your business. However, there's a catch. If you make more than $600 additional profit, you have to give them 10% of your earnings above $600. For example, if you have earned $650, then you owe 10% of $50, or $5, to your parents.
g)
If you still sell your item for the same price, what is the most money you can hope to earn from your business now?
$900.
h)
Will you have to pay your parents?
O Yes
O No
If so, determine how much you will owe your parents.
No, you will not have to pay your parents because you did not earn more than $600 additional profit.
h) No, you will not have to pay your parents because according to the condition, if you make more than $600 additional profit, you have to give them 10% of your earnings above $600. But since the business will now earn $900, which is only $300 more than the threshold of $600, you will not owe them any money.
To determine the most money you can hope to earn from your business now, you need to consider the additional $300 your parents are giving you and the condition that you have to give them 10% of your earnings above $600.
Since your parents are giving you an additional $300, your total earning potential will be your current profit plus the additional $300. Therefore, the most money you can hope to earn from your business now is $900.
Now let's determine whether you will have to pay your parents and how much you will owe them. If your profit is less than or equal to $600, you don't have to pay them anything. However, if your profit exceeds $600, you will owe them 10% of the amount that exceeds $600.
In this scenario, your profit is $900, which is more than $600. Therefore, you will have to pay your parents. To calculate the amount you owe, subtract $600 from your profit ($900 - $600 = $300), and then find 10% of that amount. 10% of $300 is $30. So, you will owe your parents $30.