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43 votes
43 votes
Kauffman Market has a gross profit percentage of 40%. It is expecting an additional $3,000 in revenues over the upcoming 3-day holiday weekend. The manager would like 3 additional staff members assisting customers during this busy time. The additional staff members will each work one 6-hour shift per day and earn $12 per hour. Would it be profitable for Kauffman Market to add the extra staff members

User Suraj Pathak
by
2.9k points

1 Answer

19 votes
19 votes

Answer:

$552

Step-by-step explanation:

The computation is shown below:

But before that following calculation need to be done

Additional profit is

= $3,000 × 40%

= $1,200

Additional labor cost is

= (3 days × 3 employees × 6 hours per day × 12 per hour )

= $648

As we can see that the company profit would be increase by

= $1,200 - $648

= $552

User Lohit Gupta
by
2.6k points