SOLUTION: I am trying to solve for the unknown profit margin (PM) but I don't understand how to properly work the equation. Below, I have copied the equation as it is written in my text book

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Question 353579: I am trying to solve for the unknown profit margin (PM) but I don't understand how to properly work the equation. Below, I have copied the equation as it is written in my text book:
.10 = PM(1.5)(.6)/ [1 - PM(1.5)(.6)
PM = .1/ .99 = 10.1%
Please advise the steps.
Thank you.
DW


Found 2 solutions by Fombitz, vleith:
Answer by Fombitz(13828) About Me  (Show Source):
You can put this solution on YOUR website!
.10+=+%28PM%281.5%29%28.6%29%29%2F+%281+-+PM%281.5%29%28.6%29%29
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.10+=+%280.9%2APM%29%2F+%281+-+0.9%2APM%29
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0.1%281-0.9%2APM%29=0.9%2APM
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0.1-0.09%2APM=0.9%2APM
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0.99PM=0.1
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PM=0.1%2F0.99
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highlight%28PM=0.101%29

Answer by vleith(2825) About Me  (Show Source):