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01 Nov 2018, 21:46
kchen1994 wrote:

Isn't the formula (new - old)/old. why are you writing it (old - new)/old?

Hi,

If you know that it is a decrease, then you need to use (old – new)/old.

And, if you do not know whether it is a decrease or increase, then you need to use (new – old)/old
• If this value is negative, then we can conclude that it is a decrease
• If this value is positive, then we can conclude that it is an increase

Since, we are given that it is a decrease, in this question, we can use the formula: (old – new)/old

Regards,
e-GMAT
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16 Nov 2018, 20:11
Hello, first time poster! Would someone be able to tell me if this way of solving this problem is correct?

So the standard ratio is 3/20 and you want to see with this ratio, how much you should have gotten at 108.

3 = X
20 108

X = 15

Then take the difference in ratios.

15-9 = 6/15 = ~40% which is close to 45
15
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06 Apr 2019, 03:43
The question tricks with $9 million in royalties for$108 million in next sales. So made the ratio 9/128 in a hurry leading to longer solving time and the answer itself could have gone any way.
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A pharmaceutical company received $3 million in royalties [#permalink] ### Show Tags Updated on: 12 May 2019, 01:33 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 $108 million in sales? (A) 8% (B) 15% (C) 45% (D) 52% (E) 56% Old Sales =$ 20 million

Old Royalties = $3 million New Sales =$ 108 million

New Royalties = $9 million Let us make both the sales approximately equal, Old Sales = 20 * 5.5 =$ 110

Increase the Old Royalties equal times = 3*5.5 = $16.5 (say$ 17)

Say, New Sales also = $110 New Royalties = $$9$$ Percentage change = $$\frac{(Old - New)}{Old} * 100$$ $$17 - \frac{9}{17} * 100$$ $$47$$ % approx (C) _________________ "Do not watch clock; Do what it does. KEEP GOING." Originally posted by AkshdeepS on 06 Apr 2019, 04:46. Last edited by AkshdeepS on 12 May 2019, 01:33, edited 1 time in total. Manager Joined: 25 Sep 2018 Posts: 65 Re: A pharmaceutical company received$3 million in royalties  [#permalink]

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11 May 2019, 23:57
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%

Royalties decreased approximately:

3/20-9/108
3/20

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25 May 2020, 00:16
C.

The ratio royalties first $20 million in sales: 3/20 The ratio royalties next$108 million in sales: 9/108 or 1/12

% change = (Ist - IInd)/Ist * 100 = (3/20 - 1/12)/ (3/20) * 100
~ 45%
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Cheers,
NJ