Beauty Business Salon Business Operations 3

Question 1

What does a break-even analysis tell a new salon owner?

Accepted Answer

The sales level where revenue exactly covers costs

Answer

Break-even identifies the revenue point at which the salon neither profits nor loses money.

Question 2

Which staffing model pays stylists a percentage of the service revenue they generate?

Accepted Answer

Commission-based

Answer

In a commission model, stylists earn a set percentage of the services they perform.

Question 3

A salon notices its busiest slots go unbooked while slow times are crowded with discounts. What pricing strategy could help?

Accepted Answer

Peak/off-peak (demand-based) pricing

Answer

Demand-based pricing raises prices at peak times and lowers them off-peak to balance the schedule.

Question 4

Which inventory practice helps prevent tying up cash in slow-moving retail stock?

Accepted Answer

Tracking product turnover and reordering by sales rate

Answer

Reordering based on turnover keeps fast sellers in stock without over-investing in slow items.

Question 5

For a US salon, which is typically a required point-of-sale compliance step for card payments?

Accepted Answer

Using a PCI-compliant payment processor

Answer

Card payments must be handled through PCI-compliant processing to protect cardholder data.

Beauty Business Practice Test