phillipe has two job offers as given below and really has no preference for either company. compare the…

phillipe has two job offers as given below and really has no preference for either company. compare the total compensations for the job offers and explain which job you think phillipe should accept and why. company a gross pay $62,000 medical insurance $3,400 paid time off $8,000 retirement $2,700 job expenses $800 company b gross pay $60,000 25% of gross pay in employee benefits

phillipe has two job offers as given below and really has no preference for either company. compare the total compensations for the job offers and explain which job you think phillipe should accept and why. company a gross pay $62,000 medical insurance $3,400 paid time off $8,000 retirement $2,700 job expenses $800 company b gross pay $60,000 25% of gross pay in employee benefits

Answer

Explanation:

Step1: Calculate total compensation for Company A

Total compensation = Gross pay+Medical insurance + Paid - time off+Retirement - Job expenses $=62000 + 3400+8000 + 2700-800$ $=75300$

Step2: Calculate total compensation for Company B

Employee benefits = 25% of gross pay = $0.25\times60000=15000$ Total compensation = Gross pay+Employee benefits $=60000 + 15000$ $=75000$

Step3: Compare the two total compensations

Since $75300>75000$, Company A has a higher total - compensation.

Answer:

Phillipe should accept the job offer from Company A because its total compensation of $75300 is higher than Company B's total compensation of $75000.