Percentage of gross profit: splitting pay between 3 depts  TOPIC_SOLVED

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Percentage of gross profit: splitting pay between 3 depts

Postby Mill on Thu Apr 02, 2009 1:23 am

A sales clerk makes $4600.00 a month selling clothes, and works for 3 diffrent departments (mens, ladies and childrens). Each department has a different gross profit at the end of the month. How do you calculate what percent of the $4600.00 to charge to each department?

Mens department gross profit $56,000.00
Ladies department gross profit $42,000.00
Childrens department gross profit $21,000.00.
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Postby stapel_eliz on Thu Apr 02, 2009 11:36 am

Mill wrote:A sales clerk makes $4600.00 a month selling clothes, and works for 3 diffrent departments (mens, ladies and childrens). Each department has a different gross profit at the end of the month. How do you calculate what percent of the $4600.00 to charge to each department?

Mens department gross profit $56,000.00
Ladies department gross profit $42,000.00
Childrens department gross profit $21,000.00.

Without knowing the company's internal rules, there is no way to know for sure. Normally, a saleman's pay would be apportioned according to where he worked and / or how much income he generated in each department, rather than how much the department made. For instance, the "men's" department made the largest profit in the given month, but the saleman may have worked almost entirely in "ladies shoes". Should the "men's" department be "charged" the most for the clerk's pay, or should the "ladies'" department?

From the information provided, I would guess that we're supposed to apportion the pay according to the percentage of the total profit that a given department's profit represents. If so, then:

Add the individual departments' profits to find the total profit.

Divide each department's profit by the total, to find that department's percentage of the total.

Multiply the clerk's pay by each department's percentage to find the amount to be charged against that department.

If you get stuck, please reply showing how far you have gotten in working through the above steps. Thank you! :D
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