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.
Will you have to pay your parents?
If so, determine how much you will owe your parents
To determine if you will have to pay your parents, we need to analyze if you will make more than $600 additional profit.
If your parents give you an additional $300 and you make more than $600 profit, then the total amount to consider is $300 + $600 = $900.
Let's assume that you make a total profit of $x above $900.
If x > 0, this means you made more than $900 profit and you will have to pay your parents 10% of your earnings above $600.
The amount to pay will be 10% of (x - $600).
So, if you make $x profit above $900, you will owe your parents 10% of (x - $600).
To determine if you have to pay your parents and how much you will owe them, we need to calculate your additional profit after receiving the $300.
Let's assume your current profit is represented by P. So, after receiving the additional $300, your new profit will be P + $300.
To determine if you have to pay your parents, we need to check if your new profit exceeds $600. If it does, then you will owe them 10% of the amount above $600.
To calculate the amount owed, we subtract $600 from your new profit (P + $300 - $600), and then multiply the result by 10% or 0.1.
If the result is positive, it means you have to pay your parents that amount. If it is negative or zero, then you won't owe them anything.
Now let's calculate:
Amount owed = (P + $300 - $600) * 0.1
To determine whether you have to pay your parents and how much you will owe them, you need to know your current profit, P.
To determine if you have to pay your parents and how much you will owe them, we need to calculate the additional profit you make with the $300 they give you and compare it to the threshold of $600.
Let's say your current profit before your parents' contribution is P.
New profit with the additional $300 = P + $300.
To calculate the additional profit, we subtract $600 from the new profit: A = P + $300 - $600.
If A is positive, you will need to pay your parents 10% of A. Otherwise, you won't owe them anything.
So, if A is greater than 0, the amount you will owe your parents is: 10% of A.
Let's calculate this step-by-step:
- Additional profit before subtracting $600:
A = P + $300 - $600
- If A > 0, you will owe your parents:
Amount owed = 10% of A
Please provide the value for your current profit (P) to proceed with the calculation.