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.
If you still sell your item for the same price, what is the most money you can hope to earn from your business now?
If I receive an additional $300 from my parents to put toward my business and have to give them 10% of my earnings above $600, the most money I can hope to earn is $600 + $300 + 0.9 * ($600 - $300).
This simplifies to $900 + 0.9 * $300, which equals $900 + $270 = $1170.
Therefore, the most money I can hope to earn from my business now is $1170.
To calculate the most money you can hope to earn from your business with the additional $300 and considering the condition of giving your parents 10% of earnings above $600, follow these steps:
1. Start with the initial amount your parents want to give you, which is $300.
2. Add this amount to the maximum allowable profit of $600, since any profit above this limit will be subject to the 10% commission. This gives you a total allowable profit of $900 ($300 + $600).
3. Calculate how much profit your business can generate without reaching the $600 limit by subtracting the original profit limit from the total allowable profit. In this case, subtract $600 from $900, giving you $300.
4. This means that any profit up to $300 is yours to keep without having to pay any commission to your parents.
5. Any profit above $300 will be subject to a 10% commission. For example, if you earn $350, your profit above $300 is $50, and you will owe your parents 10% of $50, which is $5.
6. Therefore, the most money you can hope to earn from your business now, considering the conditions, is $300.
Note: The calculations above assume that the additional profit of $300 from your parents is not part of the total allowable profit. It is separate from the profit limit of $600 and can be fully retained by you without any commission owed to your parents.
To calculate the maximum profit you can hope to earn from your business with the additional $300, we need to consider the condition that you have to give your parents 10% of your earnings above $600.
Let's assume your business was previously making a profit of $x. Now, with the additional $300, your total profit becomes $x + $300.
If the profit ($x) is less than or equal to $600, then you don't have to give anything to your parents.
If the profit ($x) is greater than $600, then you have to give your parents 10% of the earnings above $600.
Let's calculate the maximum profit by considering these two scenarios:
1. If $x ≤ $600:
In this case, you don't have to give anything to your parents, so the maximum profit you can hope to earn is $x + $300.
2. If $x > $600:
Here, you have to calculate the 10% of the earnings above $600 and deduct it from $x + $300. The maximum profit you can hope to earn is ($x + $300) - 10% of (Earnings above $600).
So, the most money you can hope to earn from your business now is:
If $x ≤ $600:
Maximum Profit = $x + $300
If $x > $600:
Maximum Profit = ($x + $300) - 10% of (Earnings above $600)
Please provide the value of $x (the previous profit) to complete the calculation.