Johnson Stores is planning its staffing for the upcoming holiday season. From past history, the store determines

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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)?

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Related Book For  answer-question

Forensic And Investigative Accounting

ISBN: 9780808056300

10th Edition

Authors: G. Stevenson Smith D. Larry Crumbley, Edmund D. Fenton

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