Johnson Stores is planning its staffing for the upcoming holiday season. From past history, the store determines
Question:
Johnson 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 $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.
b. If Johnson 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)?
Step by Step Answer:
Forensic And Investigative Accounting
ISBN: 9780808056300
10th Edition
Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton