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.
Does the investment you make and the time constraint allow you to profit from this venture?
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1 point
Yes, I can make more than $10,000
No, I make less than $10,000
The information provided does not indicate how much profit you currently make from your business, so it is not possible to determine if you will be able to make more than $10,000 or not.
To determine if the investment and time constraint allow you to profit from this venture, we would need to know two things: the potential profit you can make from the additional $300 investment and the time frame in which you expect to see returns on your investment. Without this information, we cannot accurately ascertain whether the venture will be profitable for you.
To determine if the investment and time constraint allow you to profit from this venture, you need to compare the potential additional profit you can make with the condition set by your parents.
First, let's calculate the potential additional profit:
If your parents give you an additional $300 and you make more than $600 additional profit, you'll need to calculate the maximum amount of profit above $600.
Let's assume you make x additional profit. In that case, your total profit would be $600 + x.
Now, if you make more than $600 additional profit, you'll need to give your parents 10% of the earnings above $600.
So, the amount you'll owe your parents will be 10% of (x - $600).
To determine if it's profitable to accept the investment, you need to ensure that the potential additional profit, after considering what you'll owe your parents, is positive.
Therefore, the inequality that represents this condition would be: 600 + x - (0.1)(x - 600) > 0.
To solve this inequality, we can simplify it as follows:
600 + x - 0.1x + 60 > 0 (distributed -0.1)
Simplifying further:
x - 0.1x > -600 - 60 (combined like terms)
0.9x > -660
Finally, divide both sides by 0.9 to isolate x:
x > -660 / 0.9
x > -733.33
Since profit cannot be negative, we can conclude that any additional profit greater than -$733.33 would allow you to profit from this venture.
Therefore, the answer is: Yes, you can make more than $10,000.