What assumptions go into preparing a budget for a New York Fashion Week show?

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 and higher
• Invitations: $5,000 and higher

Requirements

1. 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.  You can refer to the original article in Business Insider for additional information about the costs.
2. How much is your imaginary show budgeted to cost?  Compare the budgeted cost of your imaginary show to the budgeted cost of another student in the class.  What assumptions differed between you and the other student?

Instructor Resources

These resources are provided to give the instructor flexibility for use of Accounting in the Headlines articles in the classroom. The blog posting itself can be assigned via a link to this site OR by distributing the student handout below. †Alternatively, the PowerPoint file below contains a bullet point overview of the article and the discussion questions. †The YouTube video link below is a narration of the blog post article (no discussion questions are included in the YouTube video; those can be assigned separately.)

• Student handout (pdf)†(contains entire blog posting + discussion questions)
• PowerPoint file†(brief article overview + discussion questions)
• YouTube video (narrated article in shareable YouTube link)

This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License.