Question

A pharmaceutical company received rs. 3 million in royalties on the first rs. 20 million in sales of the generic equivalent of one of its products and then rs.9 million in royalties on the next rs. 108 million in sales. By approximately what percent did the ratio of royalties to sales decrease from thefirst rs. 20 million in sales to the next rs. 108 million in sales?

Answer 1

General formula for percent increase or decrease, (percent change) is Percent=ChangeOriginal∗100Percent=ChangeOriginal∗100.

Thus, the royalties decreased by approximately:

=320−9108320∗100≈44%=320−9108320∗100≈44%.