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Industry Liaison Officer

Real-Life Activities

Real-Life Math -- Solution

Within the first 3 months, the company sells 34,586 sound cards with your technology incorporated. The sound cards sell for $289.98. It costs the company $19.59 per sound card to incorporate your technology.

How much do you receive at the end of the first quarter?

Total = [(289.98 - 19.59) x 34,586] x 0.05
Total = 270.39 x 34,586 x 0.05
Total = 9,351,708.54 x 0.05
Total = $467,585.42

"You calculate the royalties based on a percentage of sales," says Steven Price. He is the director of university-industry relations at a university. "Royalty rates are typically 5 percent of sales."


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