Question

A pharmaceutical sales representative makes a base salary of ​$78,000 per year. In​ addition, she can earn an annual bonus of up to ​$19,400 if she meets her prescription targets for the two medications she sells. She receives 60​% of the bonus if she meets her target for Medication​ A, and she receives 40​% of the bonus if she meets her target for Medication B. If she only meets her target for Medication​ A, what would her total compensation​ (salary plus​ bonus) be for the​ year?

Answer 1

The pharmaceutical sales representative's total compensation (salary plus bonus) for the year would be $89,640.

What is the total compensation?

The total compensation for the year includes the:

• Base salary
• Overtime pay
• Bonuses
• Commissions
• Non-cash compensation.

The total compensation of a typical employee is made up of direct and indirect compensations.

Data and Calculations:

Annual base salary = $78,000

Total annual bonus = $19,400

Bonus for medication A = 860%

Bonus for medication B = 40%

Total compensation = $89,640 ($78,000 + $19,400 x 60%)

Thus, the pharmaceutical sales representative's total compensation (salary plus bonus) for the year would be $89,640.

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