Live GMAT classes with Target Test Prep start Nov 21 and Nov 22. First class free.

See classes
Target Test Prep · GMAT

Choose how you want to prepare

Learn live with an expert or move at your own pace. Every option includes the complete TTP study system.

Newsweek Readers’ Choice Awards 2026 winner: Target Test Prep, #1 Test Prep

Target Test Prep was voted #1 Best Test Prep in the 2026 Newsweek Readers’ Choice™ Awards.

★★★★★5.0563 reviews
GMATLiveTeachStarts Nov 22
Josh Braslow, Target Test Prep GMAT expert
LIVE ONLINE CLASSES

Get Ready for GMAT Test Day Faster with Live Online Classes

with Josh Braslow, 20+ years in test prep

Nov 22 · Josh Braslow
Sun · 9:30 AM to 12:30 PM ET
Included
40 hours of live online classes + 6 months of TTP OnDemand
  • Attend the first class for free
  • Every class is recorded, so you never fall behind
View classes & enroll
Limited seats availableTarget Test Prep
EALiveTeachOnDemandStart anytime
EXECUTIVE ASSESSMENT

Target Test Prep EA OnDemand

Self-paced EA prep. Study on your schedule.

EXECUTIVE ASSESSMENT

with

165+ EA score guarantee
$05-day trial no automatic billing
Schedule
Included
40 hours of live online classes plus six months of access to the complete TTP EA OnDemand course.
  • 165+ EA Score Guarantee
  • 4,100+ Quant, Verbal, and Integrated Reasoning practice questions
  • 400+ hours of in-depth video lessons
  • 3,000+ step-by-step video solutions
View EA class & enroll Start free 5-day trial
Limited cohort · enrollment openTrial includes full course accessTarget Test Prep
GMATOnDemandStart anytime
SELF-PACED MASTERCLASS

Target Test Prep GMAT OnDemand

Complete access from day one. Study on your schedule.

715+ score guarantee
$0to start then $127/mo
  • Personalized study plan and analytics
  • Thousands of lessons and practice questions
Start free 5-day trial
Read 563 reviewsTarget Test Prep

Percents of Ratio

Expert replies
Post new topic Post Reply
Subscribe topic
Previous Topic Next Topic
Senior | Next Rank: 100 Posts
Posts: 44
Joined: Sun Aug 21, 2011 1:47 am
Thanked: 3 times
by leumas » Sun Sep 11, 2011 1:32 am
A pharmaceutical company received $3 million in
royalties on the fi rst $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 fi rst $20 million in sales to
the next $108 million in sales?
(A) 8%
(B) 15%
(C) 45%
(D) 52%
(E) 56%

OA is C
Top
Join the discussion
Source: — Problem Solving |
User avatar
GMAT Instructor
Posts: 905
Joined: Sun Sep 12, 2010 1:38 amFollowed by: 123 members
Thanked: 378 times
GMAT Score:760

by Geva@EconomistGMAT » Sun Sep 11, 2011 1:42 am
leumas wrote:A pharmaceutical company received $3 million in
royalties on the fi rst $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 fi rst $20 million in sales to
the next $108 million in sales?
(A) 8%
(B) 15%
(C) 45%
(D) 52%
(E) 56%

OA is C
In order to even compare the two ratios, you need to bring them to the same base.

First ratio: 3:20, or 3/20
Second ratio: 9:108, or 9/108.

Expand the first ratio to a denominator of 108: from 20 to 108 you need to multiply times ~5.5, so the nuemrator needs to be multipled by that as well:
3/20 = ~3*5.5/108 = ~16/108.

So now the two ratios are:

16/108 decrease to 9/108. A decrease of 7 "points" from the original "16" points is slightly less than 50% - only answer choice C matches that description.
Geva
Senior Instructor
Master GMAT
1-888-780-GMAT
https://www.mastergmat.com
Top
Join the discussion
User avatar
GMAT Instructor
Posts: 15539
Joined: Tue May 25, 2010 12:04 pmFollowed by: 1906 members
Location: New York, NY
Thanked: 13060 times
GMAT Score:790

by GMATGuruNY » Sun Sep 11, 2011 3:29 am
leumas wrote:A pharmaceutical company received $3 million in
royalties on the fi rst $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%

OA is C
Geva's solution is great. I just want to point out something important: always be aware when a question asks for an APPROXIMATION.
Don't do any more math than is needed.

Original ratio = royalties/sales = 3/20 = 15%.
New ratio = royalties/sales = 9/108 ≈ 9%.
Difference = 15-9 = 6.
Difference/Original = 6/15 = 2/5 = 40%.

Only one answer choice is close enough.
The correct answer is C.
Private tutor exclusively for the GMAT and GRE, with over 20 years of experience.
Followed here and elsewhere by over 1900 test-takers.
I have worked with students based in the US, Australia, Taiwan, China, Tajikistan, Kuwait, Saudi Arabia -- a long list of countries.
My students have been admitted to HBS, CBS, Tuck, Yale, Stern, Fuqua -- a long list of top programs.

As a tutor, I don't simply teach you how I would approach problems.
I unlock the best way for YOU to solve problems.

For more information, please email me (Mitch Hunt) at [email protected].
Student Review #1
Student Review #2
Student Review #3
Top
Join the discussion
Master | Next Rank: 500 Posts
Posts: 279
Joined: Fri Nov 05, 2010 5:43 pmFollowed by: 1 member
Thanked: 15 times

by mehrasa » Sun Sep 11, 2011 11:50 am
the easy and time consuming method is to find the ration of 2 different part then find the amount of change

new/original(status 2/status 1)= 9/108/3/20= 9/108*20/3= 5/9 = 0.55 ==> %55
the second royalties is %55 of first royalties ==> decline change= 100-55= %45

OA: C
Top
Join the discussion

GMAT/MBA Expert

User avatar
GMAT Instructor
Posts: 16206
Joined: Mon Dec 08, 2008 6:26 pmFollowed by: 1268 members
Location: Vancouver, BC
Thanked: 5254 times
GMAT Score:770

by Brent@GMATPrepNow » Thu Jan 09, 2020 6:33 am
leumas wrote:A pharmaceutical company received $3 million in
royalties on the fi rst $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 fi rst $20 million in sales to
the next $108 million in sales?
(A) 8%
(B) 15%
(C) 45%
(D) 52%
(E) 56%

OA is C
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

Cheers,
Brent
Brent Hanneson - Creator of GMATPrepNow.com
Image
Top
Join the discussion