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A pharmaceutical company received $3 million in royalties

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A pharmaceutical company received $3 million in royalties [#permalink] New post 12 Dec 2012, 04:29
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A pharmaceutical company received $3 million in royalties on the first $20 million in sales of the generic equivalent of one of its products and then $9 million in royalties on the next $108 million in sales. By approximately what percent did the ratio of royalties to sales decrease from the first $20 million in sales to the next $108 million in sales?

(A) 8%
(B) 15%
(C) 45%
(D) 52%
(E) 56%
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Re: A pharmaceutical company received $3 million in royalties [#permalink] New post 12 Dec 2012, 04:32
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Walkabout wrote:
A pharmaceutical company received $3 million in royalties on the first $20 million in sales of the generic equivalent of one of its products and then $9 million in royalties on the next $108 million in sales. By approximately what percent did the ratio of royalties to sales decrease from the first $20 million in sales to the next $108 million in sales?

(A) 8%
(B) 15%
(C) 45%
(D) 52%
(E) 56%


General formula for percent increase or decrease, (percent change) is Percent=\frac{Change}{Original}*100.

Thus, the royalties decreased by approximately =\frac{\frac{3}{20}-\frac{9}{108}}{\frac{3}{20}}*100\approx{44%}.

Answer: C.
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Re: A pharmaceutical company received $3 million in royalties [#permalink] New post 14 Dec 2012, 02:18
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for this kind of percentage change questions we apply the formula (change/original)x100, so here we have initial ratio=3/20 final ratio=1/12 . now change = 3/20-1/12=1/15 , putting these values in the formula we get the answer as (C).
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Re: A pharmaceutical company received $3 million in royalties [#permalink] New post 15 Dec 2012, 08:17
To Brunuel:

Thanks for the sharing, I'm wondering whether your formula shouldn't be (9/108-3/20) / (3/20) ? This doesn't change the final answer anyway.

BTW thanks for all the great job you have been doing so far! I'm new to the forum and I'm just speechless.

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Re: A pharmaceutical company received $3 million in royalties [#permalink] New post 26 Feb 2013, 10:34
carloswn wrote:
To Brunuel:

Thanks for the sharing, I'm wondering whether your formula shouldn't be (9/108-3/20) / (3/20) ? This doesn't change the final answer anyway.



I don't think it'll make a difference because in the numerator we are just looking for the difference between the two amounts. Just make sure that in the denominator you have the original value.

For better understanding:

Percent Change = \frac{Change in Value}{Original Value}

Hence, the "change in value" is just the difference. I wouldn't worry about a negative here.
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Re: A pharmaceutical company received $3 million in royalties [#permalink] New post 26 Jun 2014, 21:19
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Re: A pharmaceutical company received $3 million in royalties [#permalink] New post 11 Sep 2014, 11:15
Bunuel wrote:
Walkabout wrote:
A pharmaceutical company received $3 million in royalties on the first $20 million in sales of the generic equivalent of one of its products and then $9 million in royalties on the next $108 million in sales. By approximately what percent did the ratio of royalties to sales decrease from the first $20 million in sales to the next $108 million in sales?

(A) 8%
(B) 15%
(C) 45%
(D) 52%
(E) 56%


General formula for percent increase or decrease, (percent change) is Percent=\frac{Change}{Original}*100.

Thus, the royalties decreased by approximately =\frac{\frac{3}{20}-\frac{9}{108}}{\frac{3}{20}}*100\approx{44%}.

Answer: C.




Hi Bunuel,

please confirm on this..

for first one --15%

for the second one approx. 8 %

so (15-8)/15 = 7/15 approx = 45
Re: A pharmaceutical company received $3 million in royalties   [#permalink] 11 Sep 2014, 11:15
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