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Vikentia [17]
3 years ago
14

Analyze Johnson Stores’ staffing budget for holidaysJohnson Stores is planning its staffing for the upcoming holiday season. Fro

m past history, the store determines that it needs one additional sales clerk for each $12,000 in daily sales. The average daily sales is anticipated to increase by $96,000 from Black Friday until Christmas Eve, or 27 shopping days. Each additional sales clerk will work an eight-hour shift and will be paid $14 per hour.a. Determine the amount to budget for additional sales clerks for the holiday season.Holiday staff budget for additional clerks $b. If Johnson Stores has an average 40% gross profit on sales. What is the additional profit generated if a staff is added for the increased sale?Additional profit $
Business
1 answer:
salantis [7]3 years ago
6 0

Answer:

Johnson Stores

Staffing Budget for Holidays:

a. The amount to budget for additional sales clerks for the holiday season is:

= $24,192.

b. The additional profit generated if a staff is added for the increased sale is:

= $1,209.60.

Explanation:

a) Data and Analysis:

Number of sales clerk required for each $12,000 in daily sales = 1

Average sales increase = $96,000

Number of sales clerk required for the $96,000 sales increase = 8 ($96,000/$12,000)

Number of shopping days from Black Friday to Christmas Eve = 27

Sales clerk works a shift per day = 8 hours

Wages per hour = $14

Total hours to be worked by the additional sales clerk = 8 * 27 * 8 = 1,728

Total wages = 1,728 * $14 = $24,192

Average gross profit on sales = 40%

Total gross profit on sales = $24,192 * 40% = $9,676.80

Additional gross profit generated by adding a staff = $1,209.60 ($9,676.80/8)

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