Question

The gross pay, benefits and job expenses for two different employees are shown below.
Employee A: gross pay $57,200, employee benefits $5,300, job expenses $800
Employee B: gross pay $56,900, employee benefits $6,200, job expenses $1,400
Which of the following is a true statement?
a.
The total employment compensations for the two employees are the same.
b.
The total employment compensation for employee A is less than that of employee B.
c.
The total employment compensation for employee A is greater than that of employee B.
d.
The total employment compensations for the two employees can not be compared..

Answer 1

Compute total compensation = gross pay + benefits + job expenses.

Employee A: 57,200 + 5,300 + 800 = 63,300
Employee B: 56,900 + 6,200 + 1,400 = 64,500

Thus employee A's total is less than employee B's. Answer: b.