Question

A pharmaceutical sales representative makes a base salary of ​$ 64,700 per year. In​ addition, she can earn an annual bonus of up to ​$ 17,600 if she meets her prescription targets for the two medications she sells. She receives 80​% of the bonus if she meets her target for Medication​ A, and she receives 20​% 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 $78,780.

What is the total compensation?

The total compensation includes the base salary, overtime pay, bonuses, commissions, benefits, and any other cash or non-cash compensation that an employee receives.

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

Data and Calculations:

Annual base salary = $64,700

Total annual bonus = $17,600

Bonus for medication A = 80%

Bonus for medication B = 20%

Total compensation = $78,780 ($64,700 + $17,600 x 80%)

Thus, the pharmaceutical sales representative's total compensation (salary plus bonus) for the year would be $78,780.

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