A local business made a $125,000 profit on its first $1 million in sales and a $80,000 profit on its next $2 million in sales. By approximately what percent did the ratio of profit to sales decrease from the first $1 million in sales to the next $2 million in sales?
Choose the correct choice from the following options.
A) 100%  B) 150%  C) 200%  D) 250%  E) 300%
Solution:   This is a percent decrease problem. We will use the formula: percent change = (new – old)/old x 100 to calculate the final answer.   We first set up the ratios of profits to sales. The first ratio will be for the first 1 million in sales, and the second ratio will be for the next 2 million in sales. Because all of the sales are in millions, we do not have to express all the trailing zeros in our ratios.   First 1 Million   profit/sales = 125/1000 = 1/8   Next 2 Million   profit/sales = 8/200 = 2/50   We can simplify each ratio by multiplying each by the LCM of the two denominators, which is 400. Keep in mind that we are able to do this only because our answer choices are expressed in percents.   First 1 Million   royalties/sales = (1/8) x 400 = 50   Next 2 Million   royalties/sales = (2/50) x 400 = 16   We can plug 5 and 6 into our percent change formula:   (new – old)/old x 100   [(16 – 50)/16] x 100   =-34/16 x 100 so approximately a 200% decrease.   Answer 200%.
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A local business made a $125,000 profit on its first $1 million in sales and a $80,000 profit on its next $2 million in sales. By approximately what percent did the ratio of profit to sales decrease from the first $1 million in sales to the next $2 million in sales?