Beauty Business Salon Financial Management 3

Question 1

A stylist on 45% commission books $2,000 in services in a week. What is her commission pay?

Accepted Answer

$900

Answer

45% of $2,000 equals $900.

Question 2

What is the primary purpose of a salon budget?

Accepted Answer

To plan and control income and spending

Answer

A budget helps forecast revenue and manage expenses to stay profitable.

Question 3

Which metric shows the average amount a client spends per visit?

Accepted Answer

Average ticket

Answer

Average ticket is total sales divided by the number of client visits.

Question 4

A salon buys product at $5 and sells it for $15 retail. What is the markup?

Accepted Answer

200%

Answer

The $10 markup over the $5 cost is 200% of cost.

Question 5

Why is an emergency cash reserve important for a salon?

Accepted Answer

To cover unexpected expenses or slow periods

Answer

A reserve protects the business during slow seasons or surprise costs.

Beauty Business Practice Test