A pharmaceutical company received $3 million in

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?

2 Explanations

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Sean Gregory

I replayed the video a couples times because I could not get around how going down by half equated to 0.75. I think he meant 0.075. Just so no one else gets confused. 0.075 + 0.075 = 0.15 which is also 7.5% + 7.5% = 15%. Not half of 0.15 equaling 0.75.

(I study 10-12 hours a day for my upcoming gmat exam so minor errors on answer videos are huge time suck for me as picking up errors like this makes me stop and try to figure it out logically if I did something wrong. In other words, my mental agility is not that strong.)

Mar 12, 2015 • Comment

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Mike McGarry, Magoosh Tutor