Q
What assumptions go into preparing a budget for a New York Fashion Weekshow?
In a recent news article in Business Insider, estimates of the various costs associated with putting on a show during New York Fashion Week were listed. These cost estimates are listed below:
What assumptions go into preparing a budget for a New York Fashion Weekshow?
In a recent news article in Business Insider, estimates of the various costs associated with putting on a show during New York Fashion Week were listed. These cost estimates are listed below:
Rent $0 to$100,000
Hair and makeup: $0 to$100,000
Stylist: $5,000 to$20,000
Public relations: $10,000 to$20,000
Models: $0 to$200,000
Lighting: $10,000 andhigher
Invitations: $5,000 andhigher
Requirements
Prepare a budget for an imaginary fashion show at New York Fashion Week. Select an estimate for each cost within the range given. Justify each estimate by describing the assumptions you are making about your imaginary fashion show.
Assumptions
The Fashion show will be arranged at rooftop garden restaurant The Heath of the McKittrick Hotel, it is estimated that the rent will be around $70000.
There will be around 30 participants and the average hair and makeup cost for each participant will be $2000. Therefore the total cost will be $60000.
There will be two stylists and each will cost $4000, therefore total cost will be $8000.
The number of PR manager will be one and there will be two assistants under him, the cost of PR manager will be $7000 and cost of each assistant will be $2500, therefore total PR cost will be $12000.
As there are 30 models, the cost of each models will be $4000, the total model cost will be $120000.
The cost of general lighting will be $6000 and stage lighting will be $5000, the total lighting cost of $11000.
The cost of invitation will be $8000.
How much is your imaginary show budgeted to cost?
Rent
|
$ 70,000
|
Hair & Makeup
|
$ 60,000
|
Stylist
|
$ 8,000
|
PR
|
$ 12,000
|
Models
|
$ 120,000
|
Lighting
|
$ 11,000
|
Invitation
|
$ 8,000
|
Total Budget Cost
|
$ 289,000
|
Purchasing a vehicle can be both an exciting and financially stressful opportunity. While shopping for a vehicle, whether online or at a dealership, the “sticker price” can often be misleading. Factors to consider in addition to the sticker price include:
The length of the loan contract (how long you have to make payments)
The value of any down payment or vehicle trade in value
All of the above can affect what your monthly payment will be once you take ownership of the vehicle.
ASSIGNMENT:
Choose a car or truck that you would like to own. Kelley Blue Book (www.kbb.com) is a great resource for vehicle prices. You may also use any car dealership website. These sites will also have payment calculators on them to help you calculate your monthly payment, given your specific parameters (interest rate, down payment, length of loan.)
This is an individual hypothetical assignment. You may choose any vehicle you want, (BMW, Smart Car, etc.), assume any down payment (down payment will reduce the amount you would have to finance).
For the length or term of the loan on the vehicle, please select a time frame within 3-7 years (36-84 months).
For the interest rate, please select a reasonable rate within 2%-8% range.
Once you have selected a vehicle, enter your inputs into the payment calculator, and print/screenshot the calculated number on both a new and used version (same vehicle class).
Log in the data in the grid below.
7. Using excel and the same vehicle parameters above, “verify” the payment amount by using the Present Value components discussed in the slides, and the JEEP example under Chapter 18.
Submission Requirements
Copy of the payment calculator with your payment displayed for both new and used Excel spreadsheet proving the values of the payment calculator. Spreadsheet MUST have calculations. Hardcoded numbers will not be accepted.
Have some fun with these tools, once you submit your assignment. You can change the amount of down payment, or select a different vehicle to see what your payment would be. Likewise, you can enter an amount into excel as the payment you can afford, and have it generate a “value” of a vehicle you could potentially afford.
Helpful Hints
Under Kelley Blue Book: the payment calculator is under “Research Tools”
On individual dealership sites, the calculator is usually under “Financing”
Leasing a vehicle is also an option. The “amount due at signing” would be equivalent to a down payment.
