A company received $2 million in royalties on the first$10 million : GMAT Problem Solving (PS)
Check GMAT Club Decision Tracker for the Latest School Decision Releases https://gmatclub.com/AppTrack

 It is currently 25 Feb 2017, 00:43

### GMAT Club Daily Prep

#### Thank you for using the timer - this advanced tool can estimate your performance and suggest more practice questions. We have subscribed you to Daily Prep Questions via email.

Customized
for You

we will pick new questions that match your level based on your Timer History

Track

every week, we’ll send you an estimated GMAT score based on your performance

Practice
Pays

we will pick new questions that match your level based on your Timer History

# Events & Promotions

###### Events & Promotions in June
Open Detailed Calendar

# A company received $2 million in royalties on the first$10 million

Author Message
TAGS:

### Hide Tags

Manager
Joined: 24 May 2010
Posts: 83
Followers: 3

Kudos [?]: 44 [0], given: 1

A company received $2 million in royalties on the first$10 million [#permalink]

### Show Tags

25 May 2010, 09:19
00:00

Difficulty:

(N/A)

Question Stats:

100% (01:37) correct 0% (00:00) wrong based on 15 sessions

### HideShow timer Statistics

Hi guys. This example was used on the iPhone app. I was confused but it may be a misteak. Can someone solve it with explantion.

A company received $2 million in royalties on the first$10 million in sales and then $8 million in royalties on the next$100 million in sales. By what percent did the ratio of royalties to sales decrease from the first $10 million in sales to the next$100 million in sales?
Intern
Joined: 26 Dec 2007
Posts: 3
Followers: 0

Kudos [?]: 1 [0], given: 3

Re: A company received $2 million in royalties on the first$10 million [#permalink]

### Show Tags

25 May 2010, 09:33
1
This post was
BOOKMARKED
Hi,

the question is:
"By what (percent) did the (ratio of royalties to sales) (decrease) from the first to next"

First find out (ratio of royalties to sales):
2:10 First
0.2
8:100 Second
0.08

Decrease = 0.2-0.08 = 0.12

Percent = (0.12/0.20) = 60%.

Hope this helps.

rgds Anirudh
Math Expert
Joined: 02 Sep 2009
Posts: 37113
Followers: 7254

Kudos [?]: 96563 [0], given: 10770

Re: A company received $2 million in royalties on the first$10 million [#permalink]

### Show Tags

25 May 2010, 09:38
Expert's post
1
This post was
BOOKMARKED
Jinglander wrote:
Hi guys. This example was used on the iPhone app. I was confused but it may be a misteak. Can someone solve it with explantion.

A company received $2 million in royalties on the first$10 million in sales and then $8 million in royalties on the next$100 million in sales. By what percent did the ratio of royalties to sales decrease from the first $10 million in sales to the next$100 million in sales?

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

Solution: Percent decrease can be calculated by the formula above:
$$Percent=\frac{Change}{Original}*100=$$
$$=\frac{\frac{2}{10}-\frac{8}{100}}{\frac{2}{10}}*100=60%$$, so the royalties decreased by 60%.

If there is another solution in app then there must be a typo.
_________________
Manager
Joined: 24 May 2010
Posts: 83
Followers: 3

Kudos [?]: 44 [0], given: 1

Re: A company received $2 million in royalties on the first$10 million [#permalink]

### Show Tags

25 May 2010, 09:40
Bunuel wrote:
Jinglander wrote:
Hi guys. This example was used on the iPhone app. I was confused but it may be a misteak. Can someone solve it with explantion.

A company received $2 million in royalties on the first$10 million in sales and then $8 million in royalties on the next$100 million in sales. By what percent did the ratio of royalties to sales decrease from the first $10 million in sales to the next$100 million in sales?

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

Solution: Percent decrease can be calculated by the formula above:
$$Percent=\frac{Change}{Original}*100=$$
$$=\frac{\frac{2}{10}-\frac{8}{100}}{\frac{2}{10}}*100=60%$$, so the royalties decreased by 60%.

If there is another solution in app then there must be a typo.

Yep typo. As a side note on the app some times for percent increase they will get a 2.9 and then say the increase is 190% can you explain
Math Expert
Joined: 02 Sep 2009
Posts: 37113
Followers: 7254

Kudos [?]: 96563 [0], given: 10770

Re: A company received $2 million in royalties on the first$10 million [#permalink]

### Show Tags

25 May 2010, 09:50
Jinglander wrote:
Bunuel wrote:
Jinglander wrote:
Hi guys. This example was used on the iPhone app. I was confused but it may be a misteak. Can someone solve it with explantion.

A company received $2 million in royalties on the first$10 million in sales and then $8 million in royalties on the next$100 million in sales. By what percent did the ratio of royalties to sales decrease from the first $10 million in sales to the next$100 million in sales?

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

Solution: Percent decrease can be calculated by the formula above:
$$Percent=\frac{Change}{Original}*100=$$
$$=\frac{\frac{2}{10}-\frac{8}{100}}{\frac{2}{10}}*100=60%$$, so the royalties decreased by 60%.

If there is another solution in app then there must be a typo.

Yep typo. As a side note on the app some times for percent increase they will get a 2.9 and then say the increase is 190% can you explain

This is correct: x is increased by y percent can be expressed as x*(1+y/100). So 190% increase is (1+1.9)=2.9 times increase. This is the same as if we are told that something increased by 100% it would mean that it increased 2 times.
_________________
Manager
Joined: 24 May 2010
Posts: 83
Followers: 3

Kudos [?]: 44 [0], given: 1

Re: A company received $2 million in royalties on the first$10 million [#permalink]

### Show Tags

25 May 2010, 10:14
how can you take x*(1+y/100) and put it in the firm x-y/x
Math Expert
Joined: 02 Sep 2009
Posts: 37113
Followers: 7254

Kudos [?]: 96563 [0], given: 10770

Re: A company received $2 million in royalties on the first$10 million [#permalink]

### Show Tags

25 May 2010, 10:32
Jinglander wrote:
how can you take x*(1+y/100) and put it in the firm x-y/x

Consider this:
Price of an apple was 1$and now price is 1.5$. What was the percent increase in price?

$$Percent=\frac{Change}{Original}*100=\frac{1.5-1}{1}*100=50%$$, the price increased by 50%, which is the same as to say that the price increased 1.5 times. So 50% increase = increase by (1+50/100)=1.5 times.

Hope it's clear.
_________________
GMAT Club Legend
Joined: 09 Sep 2013
Posts: 13959
Followers: 590

Kudos [?]: 167 [0], given: 0

Re: A company received $2 million in royalties on the first$10 million [#permalink]

### Show Tags

16 Sep 2015, 00:30
Hello from the GMAT Club BumpBot!

Thanks to another GMAT Club member, I have just discovered this valuable topic, yet it had no discussion for over a year. I am now bumping it up - doing my job. I think you may find it valuable (esp those replies with Kudos).

Want to see all other topics I dig out? Follow me (click follow button on profile). You will receive a summary of all topics I bump in your profile area as well as via email.
_________________
Re: A company received $2 million in royalties on the first$10 million   [#permalink] 16 Sep 2015, 00:30
Similar topics Replies Last post
Similar
Topics:
39 A pharmaceutical company received $3 million in royalties 14 12 Dec 2012, 04:29 34 A welder received an order to make a 1 million liter 10 16 Jan 2012, 08:59 4 In a town of 10 million households 8 11 Oct 2011, 23:29 27 A pharmaceutical company received$3 million in royalties on 15 17 Dec 2009, 08:17