The most money you can hope to earn from your business now is $600 (the additional amount you received from your parents) plus $600 (the maximum profit limit before owing your parents) which equals $1200.
To determine if you have to pay your parents, you need to calculate your profit above $600:
Profit above $600 = Total earnings - $600
Let's consider different scenarios:
1. If your profit above $600 is less than or equal to $0, you don't have to pay your parents.
2. If your profit above $600 is greater than $0, you owe your parents 10% of the profit above $600.
In this case, you would need to provide the specific amount you have earned above $600 to determine if you owe your parents any money.
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 you still sell your item for the same price, what is the most money you can hope to earn from your business now?
and will you have to pay your parents?
1 answer