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 the difference between the employee's sales and the average for the store, we need to calculate the total sales for both the employee and the store separately.
First, let's calculate the employee's sales for the month of March:
Average basket size: $9.00
Transactions per shift: 125
Total transactions for the month of March: 125 shifts * 31 days = 3,875 transactions
Total sales for the employee in March: $9.00 * 3,875 transactions = $34,875
Next, let's calculate the employee's sales for the month of April:
First two weeks:
Average basket size: $9.00
Transactions per shift: 125
Total transactions for the first two weeks of April: 125 shifts * 14 days = 1,750 transactions
Total sales for the employee in the first two weeks of April: $9.00 * 1,750 transactions = $15,750
Second two weeks:
Average basket size: $11.00
Transactions per shift: 125
Total transactions for the second two weeks of April: 125 shifts * 14 days = 1,750 transactions
Total sales for the employee in the second two weeks of April: $11.00 * 1,750 transactions = $19,250
Total sales for the employee in April: $15,750 + $19,250 = $35,000
Now let's calculate the average basket size for the store in April, assuming it remains the same as in March:
Average basket size: $11.50
Finally, let's calculate the difference between the employee's sales and the average for the store in April:
Difference = Employee's sales - Store's average sales
Difference = $35,000 - ($11.50 * Total transactions in April)
To find the "Total transactions in April," we need to calculate it using the store's average basket size and the employee's total sales in April:
Total transactions in April = Employee's total sales in April / Store's average basket size
Total transactions in April = $35,000 / $11.50 ≈ 3,043.48 transactions
Now we can calculate the difference:
Difference = $35,000 - ($11.50 * 3,043.48 transactions)
Difference = $35,000 - $35,000
Difference = $0
Therefore, the employee's sales will now be $0 lower than the average for your store in April.