In above question, there is a note: “Purchasing staff time in handling delivery querries 8.5 days per week” We have 7 days/week how can it become 8.5? and i also dont understand the working in the answer: Purchansing staff 32,000 x 8.5/5 = 54,400. Please help.
Q1. There must be more than one purchasing staff member. For example, if there were 4 staff members working 5 days per week there are 20 work-days available/week. 8.5 of those are devoted to dealing with queries.
Q2. Annual salary of a purchasing staff member = 32,000 for a 5 day week, so annual cost per working day = 32,000/5
If 8.5 days are devoted to handling queries, the annual cost of this will be 8.5 x 32,000/5.