Skip to Main Content

Source: Official Guide for the GMAT 13th Ed. Problem Solving; #115 Official Guide for the GMAT 2015 14th Ed. Problem Solving; #115

4

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

2

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

2

Gravatar Mike McGarry, Magoosh Tutor

Dec 28, 2013 • Comment

1/2 of 0.15 is 0.075. Its misprinted as 0.75.

Aug 3, 2014 • Reply

Add Your Explanation

You must have a Magoosh account in order to leave an explanation.

Learn More About Magoosh

Official GMAT Material

Official Guide for GMAT Review 2016

Official Guide for the GMAT 13th Ed.

Official Guide for the GMAT 2015 14th Ed.

Nova's GRE Prep

Official Guide for the GMAT 12th Ed.

Revised GRE PDF 2nd Ed.


Section 5.3 Problem Solving

Section 5.3 Problem Solving

Improve Your Score

Magoosh GMAT is an affordable online course for studying the GMAT.

Learn More About Magoosh

Share Post

Email

Facebook