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 so, determine how much you will owe your parents.
To determine how much you will owe your parents, first calculate the additional profit you made with their $300 contribution.
Let's say you made an additional profit of X dollars.
If X is less than or equal to $600, you won't owe them any money above $600, so you owe them $0.
If X is greater than $600, you owe them 10% of the amount exceeding $600, which is (X - $600) * 0.1.
Therefore, you will owe your parents (X - $600) * 0.1 dollars.
To determine how much you will owe your parents, you first need to calculate your additional profit.
Additional profit = Additional amount given by parents - $600
In this case, the additional amount given by parents is $300, so:
Additional profit = $300 - $600
= -$300
Since the result is negative, it means that you did not make any additional profit. Therefore, you do not owe your parents anything.
To determine how much you will owe your parents, you need to calculate how much additional profit you will make from the $300 they are giving you.
1. First, subtract the initial $600 threshold from the additional profit your parents are giving you: $300 - $600 = -$300.
Since the result is negative, it means that the additional profit is not enough to reach the threshold of $600.
2. Therefore, since the additional profit is less than $600, you do not owe your parents any money.
In this case, you do not need to give any amount to your parents.