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A pharmaceutical company received $3 million in royalties on the first
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18 Oct 2022, 02:26
18 Oct 2022, 02:26
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Question Stats:
40% (02:32) correct
60% (02:22) wrong based on 5 sessions
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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%
(A) 8%
(B) 15%
(C) 45%
(D) 52%
(E) 56%
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Joined: 20 Feb 2017
Posts: 2508
Given Kudos: 1053
GPA: 3.39
Re: A pharmaceutical company received $3 million in royalties on the first
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18 Oct 2022, 06:33
18 Oct 2022, 06:33
1
Expert Reply
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
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
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Re: A pharmaceutical company received $3 million in royalties on the first
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18 Oct 2022, 06:44
18 Oct 2022, 06:44
1
Carcass 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%
(A) 8%
(B) 15%
(C) 45%
(D) 52%
(E) 56%
First $20 million: royalties/sales ratio = 3/20 = 36/240
Next $108 million: royalties/sales ratio = 9/108 = 1/12 = 20/240
Noticed 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(36-20)/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
