Which of the following companies offers the greatest total employment compensation?
| | Company A | Company B | Company C | Company D |
| :------------- | :-------- | :-------- | :-------- | :-------- |
| Gross Pay | $37,600 | $36,800 | $38,100 | $39,000 |
| Paid insurance | $2,800 | $2,400 | $2,100 | $1,800 |
| Paid time off | $3,100 | $3,600 | $2,900 | $2,500 |
| Job expenses | $1,200 | $600 | $300 | $800 |
A. Company A
B. Company B
C. Company C
D. Company D
Answer (2)
Company C offers the greatest total employment compensation of $42,800. It is calculated by summing the gross pay, paid insurance, and paid time off while subtracting job expenses. Therefore, the answer is C.
;
Calculate the total compensation for Company A: $37 , 600 + $2 , 800 + $3 , 100 − $1 , 200 = $42 , 300 .
Calculate the total compensation for Company B: $36 , 800 + $2 , 400 + $3 , 600 − $600 = $42 , 200 .
Calculate the total compensation for Company C: $38 , 100 + $2 , 100 + $2 , 900 − $300 = $42 , 800 .
Calculate the total compensation for Company D: $39 , 000 + $1 , 800 + $2 , 500 − $800 = $42 , 500 . Company C offers the greatest total employment compensation: C .
Explanation
Problem Analysis We need to determine which of the four companies (A, B, C, and D) offers the greatest total employment compensation. To do this, we'll calculate the total compensation for each company by summing the gross pay, paid insurance, and paid time off, and then subtracting the job expenses.
Calculate Total Compensation for Company A For Company A, the total compensation is calculated as follows: T o t a lC o m p e n s a t i o n A = G ross P a y + P ai d I n s u r an ce + P ai d T im e O ff − J o b E x p e n ses T o t a lC o m p e n s a t i o n A = $37 , 600 + $2 , 800 + $3 , 100 − $1 , 200 = $42 , 300 So, Company A offers a total compensation of $42,300.
Calculate Total Compensation for Company B For Company B, the total compensation is calculated as follows: T o t a lC o m p e n s a t i o n B = G ross P a y + P ai d I n s u r an ce + P ai d T im e O ff − J o b E x p e n ses T o t a lC o m p e n s a t i o n B = $36 , 800 + $2 , 400 + $3 , 600 − $600 = $42 , 200 So, Company B offers a total compensation of $42,200.
Calculate Total Compensation for Company C For Company C, the total compensation is calculated as follows: T o t a lC o m p e n s a t i o n C = G ross P a y + P ai d I n s u r an ce + P ai d T im e O ff − J o b E x p e n ses T o t a lC o m p e n s a t i o n C = $38 , 100 + $2 , 100 + $2 , 900 − $300 = $42 , 800 So, Company C offers a total compensation of $42,800.
Calculate Total Compensation for Company D For Company D, the total compensation is calculated as follows: T o t a lC o m p e n s a t i o n D = G ross P a y + P ai d I n s u r an ce + P ai d T im e O ff − J o b E x p e n ses T o t a lC o m p e n s a t i o n D = $39 , 000 + $1 , 800 + $2 , 500 − $800 = $42 , 500 So, Company D offers a total compensation of $42,500.
Compare Total Compensations Comparing the total compensation values for each company:
Company A: $42,300
Company B: $42,200
Company C: $42,800
Company D: $42,500
We can see that Company C offers the highest total compensation.
Final Answer Therefore, Company C offers the greatest total employment compensation.
Examples
Understanding total compensation is crucial when evaluating job offers. It's not just about the gross pay; you also need to consider the value of benefits like insurance, paid time off, and any job-related expenses that are covered. For instance, if you're comparing two job offers, one with a higher salary but fewer benefits, calculating the total compensation helps you determine which offer provides the better overall value. This comprehensive approach ensures you're making an informed decision about your financial well-being.
