To determine which job offer Owen should take, we need to evaluate the total compensation for each job and consider the average monthly rent at each job location. Here’s a step-by-step breakdown of how to calculate the total annual compensation for each job:
1. Job A:
- Annual Salary: \[tex]$46,650
- Annual Bonus: \$[/tex]14,000
- Monthly Rent: \[tex]$850
First, let's calculate the annual rent expense:
\[
\text{Annual Rent Expense for Job A} = 850 \times 12 = \$[/tex]10,200
\]
Now, we can calculate the total annual compensation by adding the salary and bonus, then subtracting the annual rent expense:
[tex]\[
\text{Total Annual Compensation for Job A} = 46,650 + 14,000 - 10,200 = \$50,450
\][/tex]
2. Job B:
- Annual Salary: \[tex]$38,750
- Annual Bonus: \$[/tex]15,000
- Monthly Rent: \[tex]$790
First, let's calculate the annual rent expense:
\[
\text{Annual Rent Expense for Job B} = 790 \times 12 = \$[/tex]9,480
\]
Now, we can calculate the total annual compensation:
[tex]\[
\text{Total Annual Compensation for Job B} = 38,750 + 15,000 - 9,480 = \$44,270
\][/tex]
3. Job C:
- Annual Salary: \[tex]$52,880
- Annual Bonus: \$[/tex]8,000
- Monthly Rent: \[tex]$950
First, let's calculate the annual rent expense:
\[
\text{Annual Rent Expense for Job C} = 950 \times 12 = \$[/tex]11,400
\]
Now, we can calculate the total annual compensation:
[tex]\[
\text{Total Annual Compensation for Job C} = 52,880 + 8,000 - 11,400 = \$49,480
\][/tex]
Next, we compare the total annual compensations:
- Total Annual Compensation for Job A: \[tex]$50,450
- Total Annual Compensation for Job B: \$[/tex]44,270
- Total Annual Compensation for Job C: \[tex]$49,480
The job that offers the highest total annual compensation is Job A, with \$[/tex]50,450. Therefore, Owen should take Job [tex]\(\boxed{\text{A}}\)[/tex].
