To determine which offer is better in terms of total compensation, we need to add up the salary and benefits for each job.
For Company A:
Salary = $42,000
Medical benefits = $12,000
Dental benefits = $0 (not mentioned)
Contributions to retirement = $12,000
Total compensation = $42,000 + $12,000 + $0 + $12,000 = $66,000
For Company B:
Salary = $47,000
Medical benefits = $0 (not mentioned)
Dental benefits = $0 (not mentioned)
Contributions to retirement = $5,000
Total compensation = $47,000 + $0 + $0 + $5,000 = $52,000
Therefore, the better offer in terms of total compensation is Company A (B option).
Omar is offered a job with Company A for a salary of $42,000. He gets medical benefits, dental benefits, and contributions to his retirement worth $12,000 a year. At the same time, Company B offers him a job with a salary of $47,000. This job comes with medical benefits and contributions to his retirement worth $5,000. Both provide two-weeks paid vacation. Which is the better offer in terms of total compensation?
A. Company B because the salary is higher.
B. Company A because the total compensation is higher.
C. Company A because the salary is likely to increase later.
D. Company B because most people do not need dental benefits.
1 answer