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 same employee’s average basket size was $9.00 for the first two weeks of April but improved to $11.00 for the second two weeks of April, her sales will now be how much lower than the average for your store?
To find out how much lower the employee's sales are compared to the average for the store, you will need to calculate the employee's sales for the month of April and compare it to the average store sales.
First, let's calculate the employee's sales for March:
Average basket size for the employee in March = $9.00
Number of transactions per shift = 125
Total sales per shift = Average basket size * Number of transactions
Total sales per shift = $9.00 * 125
Total sales per shift = $1125.00
Since there are approximately 20 shifts in a month, the employee's total sales for March can be calculated as:
Total sales for March = Total sales per shift * Number of shifts in a month
Total sales for March = $1125.00 * 20
Total sales for March = $22,500.00
Now let's calculate the employee's sales for April:
Average basket size for the employee in the first two weeks of April = $9.00
Average basket size for the employee in the second two weeks of April = $11.00
Considering there are approximately 20 shifts in a month, the number of shifts in the first two weeks of April would be about:
Number of shifts in the first two weeks of April = 20 * (2/4)
Number of shifts in the first two weeks of April = 10 shifts
Total sales for the first two weeks of April can be calculated as:
Total sales for the first two weeks of April = Total sales per shift * Number of shifts in the first two weeks
Total sales for the first two weeks of April = $9.00 * 10
Total sales for the first two weeks of April = $90.00
Similarly, the total sales for the second two weeks of April can be calculated as:
Total sales for the second two weeks of April = Total sales per shift * Number of shifts in the second two weeks
Total sales for the second two weeks of April = $11.00 * 10
Total sales for the second two weeks of April = $110.00
To calculate the employee's total sales for the month of April:
Total sales for April = Total sales for the first two weeks of April + Total sales for the second two weeks of April
Total sales for April = $90.00 + $110.00
Total sales for April = $200.00
Now let's find out how much lower the employee's sales are compared to the average store sales:
Store's average basket size for March = $11.50
Total sales for the store in March = Store's average basket size * Number of transactions in March
To find the number of transactions in March, we need to divide the total sales for March by the average basket size for the store:
Number of transactions in March = Total sales for the store in March / Store's average basket size
Number of transactions in March = $22,500.00 / $11.50
Number of transactions in March ≈ 1956.52 (approximately)
Now let's calculate the employee's total sales for the store in April using the average store basket size:
Total sales for the store in April = Store's average basket size * Number of transactions in April
Total sales for the store in April = $11.50 * Number of transactions in April
Since the average basket size for the store is assumed to remain the same in April, the number of transactions in April would be the same as in March:
Number of transactions in April ≈ 1956.52 (approximately)
Therefore, the employee's sales for April will be:
Employee's sales for April = Total sales for the store in April - Total sales for April for the employee
Employee's sales for April = $11.50 * 1956.52 - $200.00
Employee's sales for April ≈ $21307.50
To find the difference between the employee's sales and the average store sales for April:
Difference = Total sales for the store in April - Employee's sales for April
Difference = ($11.50 * 1956.52) - ($11.50 * 1956.52 - $200.00)
Difference = $11.50 * 1956.52 - $11.50 * 1956.52 + $200.00
Difference ≈ $200.00
Therefore, the employee's sales will be approximately $200.00 lower than the average store sales for April.