What is the formula for calculating sales per hour?

The formula for calculating sales per hour is total sales divided by total hours worked. This method provides a clear measurement of how much revenue a business generates for each hour of operation. By taking the total sales amount and dividing it by the number of hours worked, you can determine the efficiency and effectiveness of sales performance over time.

This metric is particularly valuable in retail settings, as it allows businesses to understand their sales capacity and adjust staffing, marketing strategies, or store layouts accordingly to optimize sales during peak hours. The resulting figure helps assess how well the business is converting time into sales, which is crucial for planning and forecasting.

The other methods presented do not yield the same relevant metric. For instance, sales divided by the total number of customers provides average sales per customer metric rather than per hour. Total sales multiplied by hours worked does not calculate a rate but rather produces a figure that does not have meaningful context in evaluating sales efficiency. Lastly, using average sales per transaction times the number of transactions gives insights into transaction performance but does not specifically address the timeframe of hours worked linked to overall sales effectiveness.