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?
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The most money you can hope to earn from your business now is $850.
The most money you can hope to earn from your business now, considering the additional $300 from your parents and the condition that you have to give them 10% of your earnings above $600, is $990.
Here's the step-by-step calculation:
1. Add the additional $300 from your parents to your current profit:
Profit with $300 = Current Profit + $300
2. Determine the maximum additional profit you can make without exceeding $600, which is the point at which you would need to give your parents 10% of your earnings above $600:
Maximum additional profit = $600 - Current Profit
3. Subtract the maximum additional profit from the additional $300 to calculate the remaining profit that is not subject to the condition:
Remaining profit = $300 - Maximum additional profit
4. Add the remaining profit to your current profit to find the maximum amount you can hope to earn in total:
Maximum earnings = Current Profit + Remaining profit
In this case, the maximum earnings you can hope to earn is $990.
To determine the most money you can hope to earn from your business now, we need to take into account the additional $300 from your parents and the condition they have set for giving them a percentage of your earnings.
Let's break down the situation step by step:
1. Additional investment: Your parents are giving you an extra $300 to put toward your business.
2. Condition: If you make more than $600 additional profit, you have to give them 10% of your earnings above $600.
To calculate the maximum earnings from your business now, we need to consider the total additional investment plus the maximum profit you can make without triggering the condition.
Maximum profit without triggering the condition: If you make $600 or less additional profit, you won't owe your parents any percentage.
So, the maximum profit without triggering the condition is $600.
Total investment: $300 (from your parents)
Maximum profit without triggering the condition: $600
Total potential earnings: $300 (additional investment) + $600 (maximum profit) = $900
Therefore, the most money you can hope to earn from your business now is $900.