Sophia owns a salon that provides an array of services for her customers. She has been collecting data for the past 2 years. The sales revenue from her five most-common services are shown below: Determine the average amount of two years' sales revenue for the service that makes up the largest percentage of the total average revenue.
A) Color: 29.20%, $90,307
B) Color: 58.41%, $180,613
C) Cut: 29.22%, $90,318
D) Cut: 52.45%, $162,172

Question

Sophia owns a salon that provides an array of services for her customers. She has been collecting data for the past 2 years. The sales revenue from her five most-common services are shown below:  Determine the average amount of two years' sales revenue for the service that makes up the largest percentage of the total average revenue.
A) Color: 29.20%, $90,307 
B) Color: 58.41%, $180,613 
C) Cut: 29.22%, $90,318 
D) Cut: 52.45%, $162,172

Quizplus · Accepted Answer

This question requires familiarity using Excel to do some basic calculations. First, average the sales revenue of two years for each service. For Cut, use the formula: "=AVERAGE(B2:C2)" and the value returned should be $81,086. Repeat this process for the remaining services, and these should be the results: Color = $90,307; Perm = $21,312; Manicure = $65,723; and Pedicure = $50,790. Next, calculate the percentage of two years' total average revenue made up by each type of service. For Cut, use the formula: "(Average Revenue from Cut)/(Two Years' Total Average Revenue for All Services)" to get a value of 26.22%. Repeat the process for the remaining services, and the returned values should look like this: Color = 29.20%; Perm = 6.89%; Manicure = 21.25%; and Pedicure = 16.43%. Color is the largest contributor to the total average revenues for Year 1 and Year 2 (Choice A).

Sophia Owns a Salon That Provides an Array of Services