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.

Question

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.

Answer 1

Yes, I will have to pay my parents.

To determine how much I will owe them, I need to subtract $600 from my earnings. If my earnings are more than $600, I will owe them 10% of the amount above $600.

Let's say I earn $900 in profit.

$900 - $600 = $300 (amount above $600)

10% of $300 = 0.10 * $300 = $30

So, I will owe my parents $30.

Answer 2

To determine the most money you can hope to earn from your business now, given the additional $300 from your parents, you need to calculate the total profit after deducting any payments to your parents.

First, let's calculate the maximum profit you can make without owing anything to your parents. Since you have to pay them only if you make more than $600 in additional profit, any profit up to $600 will not be subject to the 10% payment.

The initial profit you were making without any additional funding is not mentioned in the question. However, we can assume it to be zero for simplicity. Therefore, the maximum profit without any additional funding is $600.

Now, let's calculate the maximum profit you can make with the additional $300 funding from your parents. Since you owe them 10% of any profit above $600, you need to calculate how much profit would exceed $600 and multiply it by 90% (to determine the amount you get to keep).

$300 (additional funding) / 90% = $333.33 (approx.)

Therefore, if you still sell your item for the same price, the most money you can hope to earn from your business now is $600 (maximum profit without additional funding) + $333.33 (maximum additional profit without owing anything to your parents) = $933.33 (approx.)

Next, let's determine if you will have to pay your parents.

Since the maximum profit you can hope to earn is $933.33, which is more than $600, you will have to pay your parents a percentage of the earnings above $600.

To calculate the amount you owe your parents, subtract $600 from your total profit:

$933.33 (maximum profit) - $600 (threshold) = $333.33 (amount exceeding the threshold)

Now, multiply the excess amount by 10% to determine the payment owed to your parents:

$333.33 (excess amount) * 10% = $33.33 (approx.)

Therefore, you will owe your parents $33.33 (approx.) if you make the most money possible from your business.

Answer 3

To determine if you have to pay your parents and how much you will owe them, we need to calculate the additional profit made from the extra $300 investment.

The most money you can hope to earn from your business now is $900.

Since the additional profit is $900 - $600 = $300, which is equal to the original investment, you will need to pay your parents.

To calculate the amount owed to your parents, we need to find 10% of the earnings above $600. In this case, the earnings above $600 are $300.

10% of $300 is $300 * 0.1 = $30.

So, you will owe your parents $30.