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?
*
1 point
The most money you can hope to earn from your business now is $900.
To calculate the maximum amount of money you can hope to earn from your business, we need to consider the additional $300 from your parents and the condition that if you make more than $600 additional profit, you have to give them 10% of your earnings above $600.
Let's break it down step by step:
1. Start with the additional $300 from your parents.
2. Sell your item for the same price.
3. Calculate the profit you can make without triggering the condition. In this case, it is $600 since any profit above this amount will be subject to giving 10% to your parents.
4. Calculate the maximum profit you can make without triggering the condition by subtracting $300 from the $600 limit. This gives us $300.
5. Add the maximum profit you can make without triggering the condition ($300) to the additional $300 from your parents. This gives us $600.
Therefore, the most money you can hope to earn from your business now is $600.
To calculate the maximum money you can hope to earn from your business now, we need to consider the additional profit and the condition set by your parents.
Since your parents want to give you an additional $300, that means the maximum additional profit you can make without owing them any money is $600. Anything above $600 will be subjected to the condition of giving them 10% of the excess.
To find the maximum money you can hope to earn, you need to calculate the maximum additional profit and add it to your current profit.
Let's denote the additional profit as "x". According to the condition, if x > $600, you will have to give your parents 10% of the excess.
So, the equation becomes:
Additional profit = $600 if x ≤ $600
Additional profit = $600 + 0.10(x - $600) if x > $600
To calculate the maximum money you can hope to earn from your business, add the additional profit to your current profit.
Maximum money you can hope to earn = Current profit + Additional profit
Without knowing your current profit, it's not possible to provide an exact amount for the maximum money you can hope to earn. However, you can calculate it by following the steps above and using the actual values of your current profit and the additional profit.
This equation considers the condition set by your parents and enables you to determine the maximum money you can hope to earn from your business.