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I am trying to figure out the formula to figure out combined…

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Hi there - I am trying to figure out the formula to figure out combined margin. If the margin of unit 1 is 49% and the margin of unit (who buys from unit one and marks up) is 31% and the combined margin is 50.29%, what is the formula that gets to that answer?
Submitted: 7 months ago.Category: Math Homework
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11/27/2017
Math Tutor or Teacher: Sandhya_sharma, Master's Degree replied 7 months ago
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Hi, Is there any other information given? let me know. Thanks

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Customer reply replied 7 months ago
This is for a grocery store. The first unit gets a 49% margin (from wholesale cost) and sells to the second store, who in turn gets a 31% margin after selling at retail. The report calls these two transactions a "combined margin" of 50.29%. I am wondering the formula they used to get to that result
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Math Tutor or Teacher: F. Naz, Bachelor's Degree replied 7 months ago
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The first unit selling price = 1+.49 = 1.49

the second store selling price = 1-.31 = 1.49 = 2.1594 is the selling price therefore total profit = 2.1594-1 = 1.1594, the combined margin is 1.1594/2.1594 = .5369 or 53.69%. This is the answer if figures and data given are correct, please check they are right.

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