The correct statement for computing the total annual compensation for each employee is option C. This is because the monthly commission is a percentage of the monthly salary (indicated by the column name MONTHLY_COMMISSION_PCT). To calculate the annual compensation, we need to calculate the annual salary (which is monthly_salary * 12) and add the total annual commission to it.
Here's the breakdown of the correct statement, option C:
(monthly_salary * 12) computes the total salary for the year.
NVL(monthly_commission_pct, 0) replaces NULL values in the monthly_commission_pct column with 0, ensuring that the commission is only added if it exists.
(monthly_salary * 12 * NVL(monthly_commission_pct, 0)) computes the annual commission by first determining the monthly commission (which is a percentage of the monthly salary), and then multiplying it by 12 to get the annual commission.
Finally, (monthly_salary * 12) + (monthly_salary * 12 * NVL(monthly_commission_pct, 0)) adds the annual salary and the annual commission to get the total annual compensation.
The other options are incorrect:
Option A is incorrect because it adds the monthly_commission_pct directly to the monthly_salary, which does not consider that monthly_commission_pct is a percentage.
Option B is incorrect because it adds the commission percentage directly without first applying it to the monthly salary.
Option D is incorrect because it does not handle the NULL values in the commission column, which would result in a NULL total annual compensation whenever the monthly_comission_pct is NULL.
References:
Oracle Documentation on NVL function: NVL
Oracle Documentation on Numeric Literals: Numeric Literals
