Which of the following companies offers the greatest total employment compensation?

[tex]\[
\begin{array}{|c|c|c|c|}
\hline
& \text{Company A} & \text{Company B} & \text{Company C} & \text{Company D} \\
\hline
\text{Gross Pay} & \$38,200 & \$39,000 & \$39,900 & \$39,400 \\
\hline
\text{Insurance} & \$3,500 & 20\% \text{ of gross pay} & \$3,200 & 18\% \text{ of gross pay} \\
\hline
\text{Paid Time Off} & \$4,100 & \text{included in total employee benefits} & \$3,900 & \text{included in total employee benefits} \\
\hline
\text{Job Expenses} & & \$700 & \$1,000 & \\
\hline
\end{array}
\][/tex]

a. Company A
b. Company B
c. Company C
d. Company D



Answer :

To determine which company offers the greatest total employment compensation, we need to calculate the total benefits for each company by summing the gross pay, insurance, paid time off, and job expenses (where applicable). We'll break this down step-by-step for each company.

Company A:
- Gross Pay: [tex]$38,200 - Insurance: $[/tex]3,500
- Paid Time Off: [tex]$4,100 - Job Expenses: Not listed Total Compensation for Company A: \[ 38,200 + 3,500 + 4,100 = 45,800 \] Company B: - Gross Pay: $[/tex]39,000
- Insurance: 20% of Gross Pay, which is [tex]\(0.2 \times 39,000 = 7,800\)[/tex]
- Paid Time Off: Not listed
- Job Expenses: [tex]$700 Total Compensation for Company B: \[ 39,000 + 7,800 + 700 = 47,500 \] Company C: - Gross Pay: $[/tex]39,900
- Insurance: [tex]$3,200 - Paid Time Off: $[/tex]3,900
- Job Expenses: [tex]$1,000 Total Compensation for Company C: \[ 39,900 + 3,200 + 3,900 + 1,000 = 48,000 \] Company D: - Gross Pay: $[/tex]39,400
- Insurance: 18% of Gross Pay, which is [tex]\(0.18 \times 39,400 = 7,092\)[/tex]
- Paid Time Off: Not listed
- Job Expenses: Not listed

Total Compensation for Company D:
[tex]\[ 39,400 + 7,092 = 46,492 \][/tex]

Now we compare the total compensation values for all companies:
- Company A: [tex]$45,800 - Company B: $[/tex]47,500
- Company C: [tex]$48,000 - Company D: $[/tex]46,492

Among these, Company C offers the greatest total employment compensation of $48,000.

Therefore, the answer is:
c. Company C