James opens up a flower shop. He needs to pay rent of $1200 a week with an additional 20% of rent to pay for utilities and he has 2 employees per shift with the store open 16 hours a day for 5 days a week. If he pays each employee $12.50 an hour, what are his weekly expenses to run the store? Give me reasons, before answering the question
He is open 16 * 5 = 80 hours a week. So he pays each of his employees 12.5 * 80 = $1000 per week. Since there are two employees, he pays them in total 2 * $1000 = $2000 per week. The utilities cost 1200 * .2 = $240. So his total cost per week is 1200 + 2000 + 240 = $3440. So the final answer is 3440.