Steve Campbell
class: Digital Arts and Design
subject: Financial Operations_QPI_All Aspects 7 1_Item 4 Finance
description of activity: Create a design studio budget
Standard 26) Explore how design professionals and companies calculate profit. Relate the profitability of a business to pricing and cost. For example, create a list of expenses incurred by a freelance designer and calculate the price and amount of work that must be accomplished in order to earn profit. (TN Math N-Q)
the assignment (instructions, specifications and criteria):
Design Studio Budget
Your name(s):_____________________________________
Block__________________
Assignment: Imagine that you own a graphic design studio that creates artwork for other businesses. Create a monthly budget for your studio. Research online and estimate how much would it cost each month to operate your business. Be realistic. Three people work in your studio. They are you, the owner, another designer and a secretary/receptionist.
Figure your monthly operating costs.
Operating Costs per Month
Salaries (Three employees):
You are the owner and head designer. How much do you need to pay yourself per month?
$________________
Associate designer & copywriter. How much will you pay this person per month?
$________________
Secretary & office manager. How much will you pay this person per month?
$________________
Monthly rent for 300 square feet: $________________
Monthly Utilities:
Electricity $________________
Telephone $________________
Internet $________________
Monthly equipment costs (Computers, scanners $________________
cameras, copy machine, etc.)
Monthly Office supplies: $________________
Monthly Insurance: $________________
Other (monthly): $________________
Total operating costs per month: $________________
If you billed (charged) your clients at $50 per hour, how many hours would you need to bill each month to "break even"? Example, if your operating costs are $10,000 per month, you would need to bill 200 hours per month. (10,000/50=200). That comes out to your company billing 50 hours per week.
