May 24 10:00 PM PDT  11:00 PM PDT Join a FREE 1day workshop and learn how to ace the GMAT while keeping your fulltime job. Limited for the first 99 registrants. May 25 07:00 AM PDT  09:00 AM PDT Attend this webinar and master GMAT SC in 10 days by learning how meaning and logic can help you tackle 700+ level SC questions with ease. May 27 01:00 AM PDT  11:59 PM PDT All GMAT Club Tests are free and open on May 27th for Memorial Day! May 27 10:00 PM PDT  11:00 PM PDT Special savings are here for Magoosh GMAT Prep! Even better  save 20% on the plan of your choice, now through midnight on Tuesday, 5/27
Author 
Message 
TAGS:

Hide Tags

Manager
Joined: 02 Dec 2012
Posts: 174

A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
12 Dec 2012, 05:29
Question Stats:
68% (02:23) correct 32% (02:25) wrong based on 2087 sessions
HideShow timer Statistics
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%
Official Answer and Stats are available only to registered users. Register/ Login.




Math Expert
Joined: 02 Sep 2009
Posts: 55266

A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
12 Dec 2012, 05:32
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. P.S. How to calculate: \(\frac{\frac{3}{20}\frac{1}{12}}{\frac{3}{20}}*100=\frac{\frac{9}{60}\frac{5}{60}}{\frac{3}{20}}*100=\frac{\frac{4}{60}}{\frac{3}{20}}*100=\frac{4}{60}*\frac{20}{3}*100=\frac{4}{9}*100\approx{0.44*100}=44\)
_________________




Senior Manager
Joined: 23 Sep 2015
Posts: 371
Location: France
GMAT 1: 690 Q47 V38 GMAT 2: 700 Q48 V38
WE: Real Estate (Mutual Funds and Brokerage)

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
23 Nov 2015, 15:55
% change also equals : \(\frac{new}{old}\)\( 1\) \(\frac{9}{108}\)*\(\frac{20}{3}\)\( 1\) = \(\frac{4}{9}\) ==> since 1/9 = 0,11 ==> 44%
_________________




Intern
Joined: 24 Apr 2012
Posts: 47

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
14 Dec 2012, 03:18
Ans: 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 = 3/201/12=1/15 , putting these values in the formula we get the answer as (C).
_________________
www.mnemoniceducation.com
TURN ON YOUR MINDS!!!



Manager
Joined: 07 Apr 2014
Posts: 105

A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
11 Sep 2014, 12:15
For me, percentage questions seem time consuming ..not sure if I am the only one feel this way..



EMPOWERgmat Instructor
Status: GMAT Assassin/CoFounder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 14194
Location: United States (CA)

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
29 May 2015, 15:53
Hi katzzzz, Percent questions come from the broader family of 'ratiobased' questions and you're going to see a bunch of those on Test Day, so you have to make sure that you're ready for them. While some of these questions can be wordier/longer than average, the 'key' to answering these types of questions quicker is to organize information in the most effective way possible (for the question that is asked and for the answer choices that are given). For example, ALL of the following examples mean the same thing, so you have to decide which would be easiest to work with... Men/Women = 1 to 10 = 1:10 = 1/10 = 0.1 = 10% 10M = 1W GMAT assassins aren't born, they're made, Rich
_________________
760+: Learn What GMAT Assassins Do to Score at the Highest Levels Contact Rich at: Rich.C@empowergmat.com*****Select EMPOWERgmat Courses now include ALL 6 Official GMAC CATs!*****
Rich Cohen
CoFounder & GMAT Assassin
Special Offer: Save $75 + GMAT Club Tests Free
Official GMAT Exam Packs + 70 Pt. Improvement Guarantee www.empowergmat.com/



eGMAT Representative
Joined: 04 Jan 2015
Posts: 2862

A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
02 Jun 2015, 05:48
katzzzz wrote: For me, percentage questions seem time consuming ..not sure if I am the only one feel this way.. Dear katzzzzOne reason why percentage questions may seem time consuming to you is that they usually have multiple data points (for example, the current question has earlier royalty, earlier sales, new royalty, new sales, the percentage change between earlier ratio of royalty:sales to new royalty:sales. That may seem quite a handful of quantities to track and tackle! ) Here's an approach that I suggest to you for questions that seem to have lots of information: Always go from the unknown to the known.By Unknown, I mean what the question is asking. By known, I mean the given information. Let me illustrate this approach here. The question is asking about the % decrease in some ratio. So, my first step is to let this % decrease be P. So, I can write: \(Later Ratio = (1  \frac{P}{100})(Earlier Ratio)\) Now, what is the Ratio being considered here? It is the ratio of 'Royalty to Sales' So, the above equation becomes: \(\frac{(Later Royalty)}{(Later Sales)} = (1  \frac{P}{100})\frac{(Earlier Royalty)}{(Earlier Sales)}\) Now the question is easy to solve. You simply substitute the values of earlier and later royalty, and earlier and later sales, and you get the value of P. As you can see, this approach of going 'From Unknown to Known' gave us a sense of direction to wade through the given information. I hope this helped. Best Regards Japinder
_________________



Manager
Joined: 30 Dec 2015
Posts: 84
GPA: 3.92
WE: Engineering (Aerospace and Defense)

A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
Updated on: 09 Oct 2016, 20:30
Used normal percentage method but approximated cause I was trying to complete this in 1 min \([\frac{3}{20}  \frac{9}{100}]*\frac{20}{3}*100\) \(\frac{(159)}{100} *\frac{20}{3}*100\) \(\frac{6}{100}*\frac{20}{3}*100\) =40% = ~44% (again, I approximated 108 to 100, I was lucky, if the answer choice was either 52% & 56%, I would be pulling my hair . Lesson learnt.)
_________________
If you analyze enough data, you can predict the future.....its calculating probability, nothing more!
Originally posted by colorblind on 17 Jan 2016, 20:55.
Last edited by colorblind on 09 Oct 2016, 20:30, edited 1 time in total.



CEO
Joined: 12 Sep 2015
Posts: 3724
Location: Canada

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
10 Apr 2016, 10:43
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% First $20 million: royalties/sales ratio = 3/20 = 36/ 240Next $108 million: royalties/sales ratio = 9/108 = 1/12 = 20/ 240Noticed that I rewrote both with the SAME DENOMINATOR. So, now all we need to is determine the percent change from 36 to 20. To do so, we could use some more lengthy calculations [e.g., 100(3620)/36] HOWEVER, notice that, if we start at 36, a 50% decrease would give us 18. So going from 36 to 20, must be a decrease that's LESS THAN 50% (but also pretty close to 50%) Only one answer choice works. Answer: C Related ResourceThe following free video covers the concepts/strategies that are useful for answering this question: Cheers, Brent
_________________
Test confidently with gmatprepnow.com



Target Test Prep Representative
Status: Founder & CEO
Affiliations: Target Test Prep
Joined: 14 Oct 2015
Posts: 6206
Location: United States (CA)

Re: A pharmaceutical company received $3 million in royalties on
[#permalink]
Show Tags
23 Mar 2017, 17:01
umaa wrote: A pharmaceutical company received $3 million in royalties on the first $20 million in sales of 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% This is a percent decrease problem. We will use the formula: percent change = (new – old)/old x 100 to calculate the final answer. We first set up the ratios of royalties to sales. The first ratio will be for the first 20 million in sales and the second ratio will be for the next 108 million in sales. Because all of the sales are in millions, we do not have to express all of the trailing zeros in our ratios. First 20 Million royalties/sales = 3/20 Next 108 Million royalties/sales = 9/108 = 1/12 Because each ratio is not an easy number to use, we can simplify them by multiplying each by the LCM of the two denominators, which is 60. Keep in mind that we are able to do this only because our answer choices are expressed in percentages. First 20 Million royalties/sales = (3/20) x 60 = 9 Next 108 Million royalties/sales = (1/12) x 60 = 5 We can plug 9 and 5 into our percent change formula: (new – old)/old x 100 [(5 – 9)/9] x 100 4/9 x 100 At this point we can stop and consider the answer choices. Since we know that 4/9 is just a bit less than ½, we know that 4/9 x 100 is about a 45% decrease. Answer: C
_________________
5star rated online GMAT quant self study course See why Target Test Prep is the top rated GMAT quant course on GMAT Club. Read Our Reviews If you find one of my posts helpful, please take a moment to click on the "Kudos" button.



Manager
Joined: 03 Jan 2017
Posts: 144

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
25 Mar 2017, 10:01
let's write this translation problem from the beginning into formula: 3/209/108 or 3/201/12 or 9/605/60=4/60
(4/60)/(9/60)=4/9 hence cca 44% Answer is C



Manager
Joined: 12 Jun 2016
Posts: 214
Location: India
Concentration: Technology, Leadership
WE: Sales (Telecommunications)

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
11 Jun 2017, 04:15
I did this by "Long hand", Of course it eat up more time! Just sharing in case someone interested. For the first 20 Million, \(\frac{Royalty}{sales}= \frac{3}{20}\) For the next 108 Million, \(\frac{Royalty}{sales} = \frac{9}{108}\) Required percentage = \((\frac{3}{20} \frac{9}{108})/\frac{3}{20} * 100\) = \((\frac{3}{20}  \frac{9}{108})* \frac{20}{3} * 100\) = \(3* (\frac{1}{20}\frac{3}{108}) * \frac{20}{3} * 100\) = \((1  \frac{5}{9}) * 100\) = \(\frac{4}{9} * 100\) = 44.44444 Final answer : Option C
_________________



IIMA, IIMC School Moderator
Joined: 04 Sep 2016
Posts: 1337
Location: India
WE: Engineering (Other)

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
13 Jan 2018, 23:54
Bunuel chetan2u amanvermagmat niks18Quote: \(=\frac{\frac{3}{20}\frac{9}{108}}{\frac{3}{20}}*100\approx{44%}\).
Is below approach the most efficient for simplification: Taking 1/4 common after simplifying(3/20  1/12) in numerator which finally simplifies to 2/3 and then multiplying by 20/3 which approx to 40/9. Now since denominator is slightly less than 10 and 40/10 is 4 so we shall get fraction as slightly more than 4.xx as a value.
_________________
It's the journey that brings us happiness not the destination. Feeling stressed, you are not alone!!



Math Expert
Joined: 02 Sep 2009
Posts: 55266

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
14 Jan 2018, 00:22
adkikani wrote: Bunuel chetan2u amanvermagmat niks18Quote: \(=\frac{\frac{3}{20}\frac{9}{108}}{\frac{3}{20}}*100\approx{44%}\).
Is below approach the most efficient for simplification: Taking 1/4 common after simplifying(3/20  1/12) in numerator which finally simplifies to 2/3 and then multiplying by 20/3 which approx to 40/9. Now since denominator is slightly less than 10 and 40/10 is 4 so we shall get fraction as slightly more than 4.xx as a value. I'd suggest another way: \(\frac{\frac{3}{20}\frac{9}{108}}{\frac{3}{20}}=(\frac{3}{20}\frac{1}{12})*\frac{20}{3}=1 \frac{1}{12}*\frac{20}{3}=1\frac{5}{9}=\frac{4}{9}=0.444....\)
_________________



Math Expert
Joined: 02 Aug 2009
Posts: 7684

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
14 Jan 2018, 06:00
adkikani wrote: Bunuel chetan2u amanvermagmat niks18Quote: \(=\frac{\frac{3}{20}\frac{9}{108}}{\frac{3}{20}}*100\approx{44%}\).
Is below approach the most efficient for simplification: Taking 1/4 common after simplifying(3/20  1/12) in numerator which finally simplifies to 2/3 and then multiplying by 20/3 which approx to 40/9. Now since denominator is slightly less than 10 and 40/10 is 4 so we shall get fraction as slightly more than 4.xx as a value. since the choices are slightly away, even approximation would do... get the denominator close by to compare the numerator.. \(\frac{3}{20}=\frac{3*5.5}{20*5.5}=\frac{16.5}{110}~\frac{16.5}{108}\) compare 16.5/108 with 9/108 so Now we are looking at 16.5 coming down to 9.... \(\frac{16.59}{16.5}=7.5/16.5\) half of 16.5 is 8.xx so 7.5 should be closer to 50% but <50% ans 44% Ofcourse the method above by Bunuel is simple and accurate BUT a lot depends on your ease with a method..
_________________



VP
Joined: 09 Mar 2016
Posts: 1284

A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
06 May 2018, 06:45
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% here is my approach, not sure though if it is correct though, niks18 can you please confirm it \(20=100%\) \(3=x\) cross multiply \(x = 15\) \(108=100%\) \(9 = x\) cross multiply \(x = 8\) now to calculate the difference in % decrease \(\frac{158}{15}\) = \(\frac{7}{15}\) approx i get 0.47 % which is closer to option C



Retired Moderator
Joined: 25 Feb 2013
Posts: 1214
Location: India
GPA: 3.82

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
06 May 2018, 10:02
dave13 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% here is my approach, not sure though if it is correct though, niks18 can you please confirm it \(20=100%\) \(3=x\) cross multiply \(x = 15\) \(108=100%\) \(9 = x\) cross multiply \(x = 8\) now to calculate the difference in % decrease \(\frac{158}{15}\) = \(\frac{7}{15}\) approx i get 0.47 % which is closer to option C Hi dave13Sorry but your method is incorrect. if you have assigned a value to the variable, then it should remain same. What is x here? and if you say x=3, then x cannot take any other value. Can you explain the reason to crossmultiply? Refer to Bunuel 's solution above for correct approach. Note the question is asking decrease in "Ratio". So try to find out the two ratios and then simply calculate the % decrease.



Senior Manager
Joined: 31 May 2017
Posts: 326

A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
21 May 2018, 22:25
EMPOWERgmatRichCPlease advise whether the below given way of calculation is acceptable I calculated using the percentage value's of the commission in both the numbers. First 20 million = 3 million royalties = 15% of the sales. Next 108 million = 9 million royalties = 8.33% of the sales Now i calculated the reduction in percentage values = 15% reduced to 8.33% , which is 44.46% reduction, approximately 45% Ans: C
_________________



EMPOWERgmat Instructor
Status: GMAT Assassin/CoFounder
Affiliations: EMPOWERgmat
Joined: 19 Dec 2014
Posts: 14194
Location: United States (CA)

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
22 May 2018, 11:23
Hi akadiyan, Yes  your approach/calculations are perfect for this question! GMAT assassins aren't born, they're made, Rich
_________________
760+: Learn What GMAT Assassins Do to Score at the Highest Levels Contact Rich at: Rich.C@empowergmat.com*****Select EMPOWERgmat Courses now include ALL 6 Official GMAC CATs!*****
Rich Cohen
CoFounder & GMAT Assassin
Special Offer: Save $75 + GMAT Club Tests Free
Official GMAT Exam Packs + 70 Pt. Improvement Guarantee www.empowergmat.com/



Manager
Joined: 22 Sep 2018
Posts: 249

Re: A pharmaceutical company received $3 million in royalties
[#permalink]
Show Tags
01 Nov 2018, 22:27
\(=\frac{\frac{3}{20}\frac{9}{108}}{\frac{3}{20}}*100\approx{44%}\).[/quote]
Is below approach the most efficient for simplification: Taking 1/4 common after simplifying(3/20  1/12) in numerator which finally simplifies to 2/3 and then multiplying by 20/3 which approx to 40/9. Now since denominator is slightly less than 10 and 40/10 is 4 so we shall get fraction as slightly more than 4.xx as a value.[/quote]
I'd suggest another way:
\(\frac{\frac{3}{20}\frac{9}{108}}{\frac{3}{20}}=(\frac{3}{20}\frac{1}{12})*\frac{20}{3}=1 \frac{1}{12}*\frac{20}{3}=1\frac{5}{9}=\frac{4}{9}=0.444....\)[/quote]
Isn't the formula (newold)/old. why are you writing it (oldnew)/old?




Re: A pharmaceutical company received $3 million in royalties
[#permalink]
01 Nov 2018, 22:27



Go to page
1 2
Next
[ 27 posts ]



