Your store’s average basket (transaction) size for the month of March was $11.50 and you believe the average basket size will remain the same for your store in April. One of your hourly employees had an average basket size of $9.00 for the month of March and averaged 125 transactions per shift. If the employee works four shifts per week for the month of April (a four week period) and does not change her average basket size or number of transactions, her sales will be how much lower than average for your store?
To figure out how much lower the employee's sales will be compared to the store's average, we need to calculate the difference between the employee's sales and the average sales for the store.
First, let's find out how much the employee sells per shift:
Sales per shift = average basket size * number of transactions per shift
Sales per shift = $9.00 * 125 = $1125.00
Since the employee works four shifts per week, we can calculate her weekly sales:
Weekly sales = sales per shift * number of shifts per week
Weekly sales = $1125.00 * 4 = $4500.00
Considering this is a four-week period of April, we can find the total sales for the employee in April:
Total sales in April = weekly sales * number of weeks
Total sales in April = $4500.00 * 4 = $18,000.00
Now let's calculate the average sales for the store in April:
Average sales for the store in April = average basket size * number of transactions
Average sales for the store in April = $11.50 * 125 = $1437.50
Finally, we can find the difference between the employee's sales and the store's average sales:
Difference = average store sales - employee sales
Difference = $1437.50 - $18,000.00 = -$15,562.50
The employee's sales will be $15,562.50 lower than the average for your store in April.