Lakeridge Stores is planning its staffing for the upcoming holiday season. From past history, the store determines that it needs one additional sales clerk for each $15,000 in daily sales. The average daily sales is anticipated to increase by $90,000 per day from Black Friday until Christmas Eve, or 27 shopping days. Each additional sales clerk will work an 8-hour shift and will be paid $15 per hour.
a. Determine the amount to budget for additional sales clerks for the holiday season.
b. If Lakeridge Stores has an average 40% gross profit on sales, should it add the staff suggested by your answer in (a)? That is, is it profitable to staff for the increased sales in (a)?