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?

$900.

h)
Will you have to pay your parents?

O Yes
O No

If so, determine how much you will owe your parents.

1 answer

Yes, I will have to pay my parents.

To determine how much I will owe them, I need to subtract $600 from my earnings. If my earnings are more than $600, I will owe them 10% of the amount above $600.

Let's say I earn $900 in profit.

$900 - $600 = $300 (amount above $600)

10% of $300 = 0.10 * $300 = $30

So, I will owe my parents $30.