Analyze Johnson Stores’ staffing budget for holidaysJohnson 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 a staff is added for the increased sale?Additional profit $

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)

definitely a

answer; i believe its (d) intrinsic;