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. 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 the staff is added for the increased sale? Additional profit $__________

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Analyze Johnson Stores’ staffing budget for holidays

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.

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 the staff is added for the increased sale?

Additional profit $__________

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