Given: 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.

Asked: 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?

The ratio of royalty of one pharmaceutical company product = 3/20 = 15%
Ratio of royalty of next pharmaceutical company product = 9/108 = 1/12 = 8.33%

The percent with which ratio of royalties to sales decrease from the first $20 million in sales to the next $108 million in sales = (3/20 - 1/12)/(3/20) * 100% = {(9-5)/60}/(9/60) * 100% = 400/9 % = 44.44% ~ 45%

Answer: C