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
No
To determine the most money you can hope to earn from your business now, we need to consider the condition that if you make more than $600 additional profit, you have to give your parents 10% of your earnings above $600.
Suppose we let x represent the additional profit you make.
Now, if you sell your item for the same price and your parents give you an additional $300, the total additional profit can be represented as (x + 300).
According to the condition, if (x + 300) is greater than $600, then you have to give your parents 10% of the earnings above $600. So, (x + 300 - 600) is the amount you have to give your parents.
To find the most money you can hope to earn, we need to subtract the amount you have to give your parents from the total additional profit.
Therefore, the most money you can hope to earn can be calculated as (x + 300) - (x + 300 - 600) = 900.
So, the most money you can hope to earn from your business now is $900.
Now let's move to the next part of the question.
To determine whether you have to pay your parents, we need to compare the total additional profit with $600.
If (x + 300) is greater than $600, then you have to pay your parents 10% of the earnings above $600.
Since $900 is greater than $600, according to the condition, you will have to pay your parents.
Therefore, the answer to question h) is:
O Yes, you will have to pay your parents.