NIC Barber Written (Theory) ExamBusiness and Professional PracticesEasy
A barber is considering leasing a chair in an established salon. The owner offers a commission-based pay structure where the barber receives 60% of their service sales, and the salon retains 40%. If the barber's total service sales for a week are $1,250, how much will the salon retain from these sales?
- A$750.00
- B$1,000.00
- C$500.00
- D$1,250.00
Show answer & explanationAnswer & explanation
Correct answer: C. $500.00
The salon retains 40% of the service sales. To calculate this, multiply the total sales by the salon's retention percentage: $1,250 * 0.40 = $500.00.
Why the other options are wrong
- A. This represents the barber's 60% commission, not the salon's retention.
- B. This option is incorrect and does not represent a valid calculation based on the given percentages.
- D. This is the total service sales, not the amount retained by the salon.
Commission-Based Pay (Salon Retention)
A compensation structure where a barber or stylist earns a percentage of their service sales, and the salon retains the remaining percentage to cover overhead and profit.
- Common in many salons and barbershops.
- Percentage splits vary widely.
- Salon's retained portion covers rent, utilities, supplies, and profit.
Memory trick: Money flows in, then splits. Salon takes its slice.