A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data have been provided:
-Carillon's Department Stores is planning its staffing for the upcoming holiday season. From past history, the store determines that it needs one additional sales clerk for each $15,000 in daily sales. The average daily sales is anticipated to increase by $135,000 from Black Friday until Christmas Eve, or 27 shopping days. Each additional sales clerk will work a six-hour shift and will be paid $16 per hour. The amount to budget for additional sales clerks for the holiday season is

Question

A company is preparing its cash budget. Its cash balance on January 1 is $290,000, and it has a minimum cash requirement of $340,000. The following data have been provided:  ​
-Carillon's Department Stores is planning its staffing for the upcoming holiday season. From past history, the store determines that it needs one additional sales clerk for each $15,000 in daily sales. The average daily sales is anticipated to increase by $135,000 from Black Friday until Christmas Eve, or 27 shopping days. Each additional sales clerk will work a six-hour shift and will be paid $16 per hour. The amount to budget for additional sales clerks for the holiday season is

Quizplus · Accepted Answer

The increase in daily sales is $135,000, which requires 9 additional clerks ($135,000 / $15,000 per clerk). Each clerk works 6 hours per day for 27 days, totaling 162 hours. At $16 per hour, each clerk earns $2,592. For 9 clerks, the total budget is $23,328 (9 clerks * $2,592 per clerk).

A Company Is Preparing Its Cash Budget