Question

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

Answer 1

$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