Question

Alejandro, a pharmaceutical sales representative, sells statins for a drugmaker. He earns a 12% commission of the total sales of the statins that he sells to hospitals. If he earned $60,000 in commissions, what was the total dollar value of the drugs that he sold?

a. $500,000
b. $400,000
c. $720,000
d. $600,000

Answer 1

By dividing the commission earned ($60,000) by the commission rate (12%), we find that Alejandro sold $500,000 worth of statins to hospitals. The correct option is (a) $500,000.

Step-by-step explanation:

To determine the total dollar value of the statins that Alejandro sold, we need to use the information about his commission. We know that he earns a 12% commission on the total sales and that he earned $60,000 in commissions. To find the total sales, we use the following calculation:

Commission Rate = Commission Earned / Total Sales

Therefore:

Total Sales = Commission Earned / Commission Rate

Total Sales = $60,000 / 0.12

Total Sales = $500,000

Alejandro sold $500,000 worth of statins to hospitals, which makes option (a) $500,000 the correct answer.