# Math Lesson Plan Practicum in Audio Video Production

```Math
Practicum in Audio Video Production
Lesson Plan
Performance Objective
Upon completion of this lesson, each student will calculate mathematical problems used by Audio
Video Production and Broadcast Industry Professionals, such as file size calculations, frame speed and
production cost estimates. They will also calculate budgets, estimates, time cards and other
Specific Objectives
• Students will explain the concepts of cost, profit and budgeting.
• Students will calculate Audio and Video file sizes.
• Students will calculate subcontractor markups, discounts and late fees.
• Students will calculate the area of a rectangle and other geometry calculations.
This lesson should take 10-12 class days to complete, unless the teacher decides to teach the discount
material separately from mark-up.
Preparation
TEKS Correlations
This lesson, as published, correlates to the following TEKS. Any changes/alterations to the activities
may result in the elimination of any or all of the TEKS listed.
130.87 (c)
(2) The student implements advanced professional communications strategies. The student :
(A) adapts language for audience, purpose, situation, and intent such as structure and
style;
(B) organizes oral and written information;
(C) interprets and communicate information, data, and observations;
(D) presents formal and informal presentations;
(E) applies active listening skills to obtain and clarify information;
(F) listen to and speak with diverse individuals; and
(G) exhibit public relations skills to increase internal and external customer/client
satisfaction.
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(3) The student implements advanced problem-solving methods. The student is expected to
employ critical-thinking and interpersonal skills, including data gathering and
interpretation independently and in teams to solve problems and make decisions.
(4) The student implements advanced information technology applications. The student is
expected to use personal information management, email, Internet, writing and
publishing, presentation, and spreadsheet or database applications for audio and video
projects.
(11) The student implements an advanced understanding of a client-based production. The
student:
(A) determines client needs by:
(i) conducting client meetings to identify specific project requirements; and
(ii) researching target audience and demographics to meet client needs;
(B) develops a production proposal for client approval by:
(i) creating a production schedule;
(ii) researching and determining production costs; and
(iii) researching and determining appropriate delivery and distribution options;
(C) engages in pre-production activities for successful execution of the project by:
(i) identifying equipment, crew, and cast requirements;
(ii) developing a budget with considerations for crew, cast, and equipment;
(iii) analyzing the script and storyboard processes; and
(iv) assigning team roles required for production;
(D) conducts a client meeting for presenting production strategies and implement client
feedback;
(E) applies advanced principles of production by:
(i) implementing a coherent sequence of events;
(ii) using necessary equipment and crew for quality productions; and
(iii) demonstrating teamwork and knowledge of interpersonal skills with
sensitivity to diversity;
(F) implements advanced skills in the post-production process by:
(i) demonstrating appropriate use of editing systems;
(ii) making decisions appropriate for each element of production;
(iii) making necessary adjustments regarding compatibility issues, including
digital file formats and cross-platform connectivity;
(iv) using various compression formats; and
(v) demonstrating knowledge in outputting for distribution; and
(G) delivers the product by:
(i) researching the appropriate delivery formats for the target audience;
(ii) advising clients on optimal delivery options; and
(iii) discussing distribution options with optimal project reach.
2
(A) implements standard freelance self-promotion techniques;
(B) develops invoices and standard billing practices;
(C) research small-business start up practices; and
(D) use information technology applications common to small businesses.
Interdisciplinary Correlations
110.47(b)
(1) The student uses the following word recognition strategies. The student is expected to:
(A) Apply knowledge of letter-sound correspondences, language structure, and
context to recognize words;
(B) Use reference guides such as dictionaries, glossaries, and available technology to
determine pronunciations of unfamiliar words;
(2) The student acquires an extensive vocabulary through reading and systemic word study.
The student is expected to:
(A) Expand vocabulary by reading, viewing, listening, and discussing;
(B) Determine word meanings through the study of their relationships to other
words and concepts such as content, synonyms, antonyms, and analogies;
(4) The student comprehends text using effective strategies. The student is expected to:
(A) Use prior knowledge and experience to comprehend;
(D) Summarize texts by identifying main ideas and relevant details.
Public Speaking I, II, III
110.57 (b)
(4) Organization. The student organizes speeches. The student is expected to:
(B) Organize speeches effectively for specific topics, purposes, audiences, and
occasions.
(7) Delivery. The student uses appropriate strategies for rehearsing and presenting speeches.
The student is expected to:
(C) Develop verbal, vocal, and physical skills to enhance presentations.
(5)(B) use language clearly and appropriately;
• Students will secure signatures on all forms, as specified by the teacher.
• Students will return all paperwork in a timely manner.
3
Accommodations for Learning Differences
Lessons should accommodate the needs of every learner. These lessons may be modified to
accommodate your students with learning differences by referring to the files found on the Special
Populations page of this website (cte.unt.edu).
Preparation
• Students will take notes and complete all problems as required.
• Students will complete all worksheets.
Instructional Aids
• Student Notes sheet
• Student worksheets
Materials Needed
• Copies
• pencils
Equipment Needed
• Teacher computer
• Projector (for digital presentation)
• Calculators
Introduction – The Clients Budget
Learner Preparation
• How do you determine how much hard drive or server storage you need for projects?
• How much does it cost you to do business?
• How do you figure out how much to charge a client?
• Explain how overhead and profit margins are related to your costs of doing business and why
they are important for staying in business.
Lesson Introduction
• Ask the class how much what they think Audio and Video Production should cost per hour.
• Ask them how much product the client would have to sell to make their Audio Video Production
pay for itself.
• Explain Overhead, Profit Margins and Production Expenses.
•
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An Audio Video Production Budget
•
•
•
•
How does an Audio Video Production or Broadcast Company decide on prices and fees?
How does Audio Video Production or Broadcast Company create an estimate for a project?
List on the board what is included in overhead expenses and project specific expenses.
Explain that profit margin is the amount of money earned above overhead and project
expenses. Profit is what is left after ALL expenses have been paid.
Lesson Introduction
• Ask the class to speculate on what it would cost to produce and broadcast a 60sec TV Spot.
o (Superbowl spots are a great conversation starter.)
• Explain the difference between a budget to produce the spot and a budget to broadcast the
spot. The two costs together constitute the total expense to the client.
• Explain how the production company will estimate overhead and project expenses to
determine a &quot;break-even point&quot; and then add profit margins to justify the project. Broadcasters
will do the same except they may factor in Market Share (the number of people watching at the
time of broadcast) to increase profit margins.
• Explain that other factors can affect the final break-even point and later income streams, such
as residuals and product licensing, which may increase profit margins.
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Outline
MI
OUTLINE
I- Calculating Single File Sizes
A- Scenario with questions
C-Concepts you need to know
1-Aspect Ratio
2-What is a byte, bit,
kilobyte, megabyte, gigabyte
II- Calculating Audio And Video File
Sizes
A- Scenario with questions
C-Concepts you need to know
NOTES TO TEACH
The teacher has the discretion to
teach math concepts back to back or
separate them.
These concepts may be somewhat
difficult for the students to grasp. It
may be necessary for the teacher to
suggestion is to put students into
groups or pairs and have them craft 5
or 10 problems (and work the answer
keys) that could be compiled and
shared with the entire class.
III- Calculating Production Costs
A- Scenario with questions
C-Concepts you need to know
1-Cost of Goods
2- Cost of Labor
VI- Calculating a job bid
A- Scenario with questions
C-Concepts you need to know
2-Estimating
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Multiple Intelligences Guide
Existentialist
Interpersonal
Intrapersonal
Kinesthetic/
Bodily
Logical/
Mathematical
Musical/Rhythmic
Naturalist
Verbal/Linguistic
Visual/Spatial
Application
Guided Practice
The teacher will use the multimedia presentations to teach the material. The teacher will monitor
students’ guided and independent practice activities.
Independent Practice
• Students will complete all work in class, so the teacher can check for understanding.
• Students will complete all worksheets or problems.
• Students will be prepared to present their answers to the class.
Summary
Review
• Why do Audio Video Production and Broadcast Companies consider overhead expenses when
pricing projects?
• Why is it important for Audio Video Production and Broadcast Companies to factor the cost of
time and materials for individual projects?
• Why do Audio Video Production and Broadcast Companies calculate files sizes and aspect
ratios, and why is this important?
• Why are discounts and special pricing on overhead and project resources important to the
Audio Video Production and Broadcast Companies?
•
•
•
Evaluation
Informal Evaluation:
o Teacher will check for understanding
o Very small work group option (students help each other)
Formal Evaluation:
o Tests over the material
7
Math: Calculating Single File Sizes
Objective:
Learn how to calculate the file size of a Video Project to determine if the costs of the project will fall
within budget guidelines.
*Teacher Note: Use the following information for class instruction or make copies for students to
keep in their folders. Use this information so students can do the following:
1.
2.
3.
4.
5.
Calculate an assortment of file sizes
Understand how file sizes change with content and distribution method.
Demonstrate knowledge of why file data is manipulated
Demonstrate proficiency with math calculations
Learn industry standard aspect ratios, terms and formulas
of the file size of the project. Productions that are too big won't play quickly, won't load quickly, and
will take up bandwidth and server storage space. Productions compressed to smaller file sizes will
pixelate and will suffer from poor quality.
For the Audio Video Production Companies, file size (video quality) is determined by the client and
distribution method. For Broadcast Companies, a smaller file size (lower video quality) is often
preferred in order to maximize storage capacity and bandwidth of their network.
In this math section you will learn to roughly figure out the file sizes of images so that you can adjust
them for quality and speed of reproduction and so when you upload to an internet video site and it
says your video is too big, you can make an informed decision on whether to adjust DPI, aspect ratio,
etc.
Example:
Let's start with a standard video application screen stage or canvas that is 720 x 480 pixels in size. The
DPI is 72 and the bit depth is 24 bits RGB (16.7 million colors).
This produces a file that is 345,600 total pixels in size and is 10 inches x 6.66 inches in print size. There
are 1,036,800 bytes, 1012.5 kilobytes (kb) and .9887 Megabytes (Mb) in the file. Some applications will
tell you all of this information, but others will not. You can calculate this by yourself so it is not a
mystery how the computer comes up with these numbers.
Let's look at how this information is figured out
Total pixels is an easy math problem. It is simply the total pixels of any size area (length x width =
area).
L x W = Area
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SD Video - 720 px x 480 px = 345,600 total pixels
HD Video – 1920px x 1080px = 2,073,600 total pixels (sometime called 2K resolution)
To convert pixels to inches you need to know that there are 72 pixels per inch. The formula to convert
pixels to inches is X/72=inches, where X is the number of pixels on a side.
720px/72 = 10 inches
480px/72= 6.6666 inches
1920px/72 = 26. 6666 inches
1080px/72 = 15 inches
So once you figure out the size of your bitmap, how can you convert it to a data file size?
There are several formulas for the number of bytes of data each pixel holds, but the average we will
use here is 3, which is the norm for RGB color.
The formula for figuring out the number of bytes in an image is L x W x 3 = Bytes, where the length
and width are measured in pixels.
SD - 720px x 480px x 3 = 1,036,800 bytes (of information)
HD - 1920px x 1080px x 3 = 6,220,800 bytes (of information)
Now how do we convert that to kilobytes or megabytes?
Back in the early computer days, when data cost so much to process and store and we managed data
in kilobytes, the standard was set to binary kilobytes. Memory chips and file sizes are kilobytes (1024
bytes) or megabytes (1024x1024 bytes) or gigabytes (1024x1024x1024 bytes). Yes, it really doesn’t
matter to us today if we have some extra kb’s in storage when we’re measuring our storage in gigs, but
it still matters when you’re saving tens of thousands of images to be used in a game, animation or
video. Even today we still need to keep our file sizes as small as possible.
To convert our photograph to kilobytes we divide by 1024.
To convert to megabytes we divide by 1,048,576 (1024 x 1024)
For gigabytes we divide by 1024 cubed (1024 x 1024 x 1024).
1,036,800 / 1024 = 1,012.5 kilobytes (kb)
1,036,800 / (1024 x 1024) = .9887695 megabytes (Mb)
1,036,800/ (1024 x 1024 x 1024) = .0009655 gigabytes (GB)
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Name
Period
Calculating Single Image File Sizes
Practice Formulas:
Total pixels L x W = Area
To convert pixels to inches, 72 pixels per inch with X/72=inches, where X is the number of pixels on a
side.
Number of bytes of data in an RGB pixel = 3
The formula for figuring out the number of bytes in an image is Length in Pixels x Width in Pixels x 3 =
Bytes
To convert our photograph to kilobytes we divide by 1024. To convert to megabytes we divide by
1,048,576 (1024 x 1024) and to gigabytes we divide by 1024 cubed (1024 x 1024 x 1024).
1. You have an analog photograph that measures 8” x 10”.
If you scan the photo at 72 DPI and keep it 8” x 10” what would the kilobyte file size be?
Megabytes?
2. If you take the same photo in question 1 and scan the photo at 72 DPI and reduce the size
to 5” x 7”, what would the file size be in kilobytes? Megabytes?
3. You have a digital file that is 1080 pixels by 500 pixels. What is the size in inches?
4. Your 10-second video contains individual images at a resolution of 720 pixels x 480 pixels at
72DPI. Your frame rate is 30 frames per second. How many images will be needed for the
movie? What is the size of each image? What is the size of the total movie in bytes?
Kilobytes? Megabytes?
10
Calculating Single Image File Sizes: Answer Key
Formulas:
Total pixels L x W = Area
To convert pixels to inches, 72 pixels per inch with X/72=inches, where X is the number of pixels on a
side.
Number of bytes of data in an RGB pixel = 3
The formula for figuring out the number of bytes in an image is Length in Pixels x Width in Pixels x 3 =
Bytes
To convert our photograph to kilobytes we divide by 1024. To convert to megabytes we divide by
1,048,576 (1024 x 1024) and to gigabytes we divide by 1024 cubed (1024 x 1024 x 1024).
1. You have an analog photograph that measures 8” x 10”.
If you scan the photo at 72 DPI and keep it 8” x 10” what would the kilobyte file size be?
Megabytes?
(8&quot; x 72 pixels per inch) x (10&quot; x 72 pixels per inch) =
576 x 720 = 414,720 pixels
414,720 x 3 (number of bytes in a pixel) = 1,244,160 bytes
1,244,160 bytes / 1,024 = 1,215 KB
1,244,160 bytes / 1,048,576 = 1.1865 MB
2. If you take the same photo in question 1 and scan the photo at 72 DPI and reduce the size
to 5” x 7”, what would the file size be in kilobytes? Megabytes?
(5&quot; x 72 pixels per inch) x (7&quot; x 72 pixels per inch) =
260 x 504= 131,040 pixels
131,040 x 3 (number of bytes in a pixel) = 393,120 bytes
393,120 bytes / 1,024 = 383.906 KB
393,120 bytes / 1,048,576 = .37490 MB
3. You have a digital file that is 1080 pixels by 500 pixels. What is the size in inches?
1080 / 72 = 15&quot;
500/ 72 = 6.944&quot;
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Calculating Single Image File Sizes: Answers continued
4.
Your 10-second video contains individual images at a resolution of 720 pixels x 480 pixels
at 72DPI. Your frame rate is 30 frames per second. How many images will be needed for
the movie? What is the size of each image? What is the size of the total movie in bytes?
Kilobytes? And Megabytes?
10 seconds x 30 frames per second = 300 frames
720 px x 480 px x 3 (bytes in a pixel) = 1,036,800 bytes per frame
300 frames x 1,036,800 bytes per frame = 311,040,000 bytes in the movie
311,040,000 / 1,024 = 303,750 KB
311,040,000 / 1,048,576 = 296.630 MB
12
Name
Period
Calculating Video and Audio File Sizes
Student Notes: (Keep a copy in your folder)
To calculate file size for a movie you will need to first calculate the size of the video portion of the
movie. We will then calculate the audio portion of the video and add them together for a total movie
size. Understand for this lesson we are using UNCOMPRESSED values for both the Audio and Video.
Compression Algorithms, such as MP4, MP2 and H.264 employ different variables when compressing a
movie. These algorithms are complex and can be difficult to accurately calculate file size using the
methods we are teaching. Uncompressed file sizes will be larger than compressed files.
CALCULATING VIDEO FILE SIZE
• The Duration of the Video in Time (may need to convert to seconds)
• How many Frames per Second (fps) Today’s cameras allow the user to select several frame
rates.
• The amount of Horizontal Pixels. (SD Video = 720 HD Video = 1080 or 1920)
• The amount of Vertical Pixels. (SD Video = 480 HD Video = 720 or 1080)
• Bit Depth of the image – the number of bits per pixel. More pixels = More Color
Example
Video is shot in 720x1080 HD, 36 seconds in duration at 24 fps and a bit depth of 8-bit
Audio is Stereo 48K at 16bit
Formulas:
Step 1.
Total # of Frames = Frame Rate x Duration of Video in Seconds
Example: The above example Video has a duration of 36 second and shot at 24 fps
24fps x 36sec = 864 frames
Step 2.
File Size of the Frame = Horizontal Pixels x Vertical Pixels x Bit Depth / 8 x 1024
Example: The above example Video is formatted at HD 720 x 1080 at a bit depth of 24.
1080H x 720V x 8 = 6,220,800 = 759.375 KB
8 x 1024
8192
Step 3.
Total VIDEO File Size = Total # of Frames x File Size of the Frame
Example:
The above example final step.
864 frames x 759.357 KB = 656,084.448KB or 640.707MB
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CALCULATING AUDIO FILE SIZE
Required Information
• The Duration of the Audio File in Time (may need to convert to seconds)
• Sample Rate: The number of times a sample is taken from the sound wave per second. CD
audio is 44100 or 44.1K. Many video cameras and editors use 48K
• Sample Size (bit resolution): Number of bits per sample. The most common are 8-bit, 16-bit
and new 32-bit
Example
Video is shot in 720x1080 HD, 36 seconds in duration at 24 fps and a bit depth of 8-bit
Audio is Stereo 48KHz at 16bit
Mono Audio File Size = Sample Rate x Sample Size x Time
Stereo Audio File Size = (Sample Rate x Sample Size x Time) x 2
Step 4.
Total AUDIO File Size = Stereo Audio File Size = (Sample Rate x Sample Size x Time) x 2
(48,000Hz x 16 bits x 36 seconds) x 2 = 27,648,000 bits
27,648,000 = 3,456,000 Bytes
3,456,000 = 3,375 KB
3,375 = 3.29 MB
8
1024
1024
Notice we added some conversion steps to get the value to where we can ad it to our video file size.
We converted bits to Bytes by dividing by 8: We converted Bytes to Kilobytes by Dividing by 1024: we
converted Kilobyte to Megabytes by again dividing by 1024. Final Answer is 3.29MB
Step 5.
Video File Size + Audio File Size = Total Video File Size
(Video File Size) 640.707MB + (Audio File Size) 3.29MB = (Total File Size) 643.997MB
14
Name
Period
Calculating Video and Audio File Sizes: Practice
PROBLEM 1: Calculate the file size for a Video with NO AUDIO. The Video is 1 minute and 45 seconds
long. It
was shot in uncompressed 10-bit Full HD format 1920 x 1080 at 30 fps.
PROBLEM 2: Calculate the file size for an AUDIO VOICE OVER. The audio is in Mono at a sample rate
of 48Khz and a bit rate of 16. Voice over run time is 2 minutes 38 seconds
PROBLEM 3: Calculate the Total File Size For a Movie: Run time 1hr:29min:16sec. The movie is HD
1080 x 720 uncompressed 8-bit video at 24frames per second. Audio is 8-bit at 44.1Khz
Stereo.
PROBLEM 4: Calculate the Total File Size for a Video Clip. It was shot with one of the new 4K cameras.
Run time is 48 seconds. It is 10-bit uncompressed raw video at a resolution of 1920 x
1920 at 60fps. Audio is 32-bit mono at 96Khz.
15
Calculating Video and Audio File Sizes: Answer Key
PROBLEM 1: Calculate the file size for a Video with NO AUDIO. The Video is 1 minute and 45 seconds
long. It
was shot in uncompressed 10-bit Full HD format 1920 x 1080 at 30 fps.
105seconds x 30 fps = 3150 frames
1920H x 1080V x 10-bit = 20,736,000bits = 2531.25KB per frame
8 x 1024
8192
3150 frames x 2531.25 KB per frame = 7,973,437.5KB = 7,786.56MB = 7.6GB
1024
1024
PROBLEM 2: Calculate the file size for an AUDIO VOICE OVER. The audio is in Mono at a sample rate
of 48Khz and a bit rate of 16. Voice over run time is 2 minutes 38 seconds
48,000 x 16-Bit x 158sec = 121,344,000bits = 15,168,000Bytes = 14,812.5KB =
14.465MB
8
1024
1024
PROBLEM 3: Calculate the Total File Size For a Movie: Run time 1hr:29min:16sec. The movie is HD
1080 x 720 uncompressed 8-bit video at 24frames per second. Audio is 8-bit at 44.1Khz
Stereo.
5356seconds x 24fps = 128,544frames
1080H x 720V x 8bit = 6,220,800bits = 759.375KB per frame
8 x 1024
8192
128,544frames x 759.375KB per frame = 97,613,100KB = 95,325.293MB =
93.09GB
1024
1024
(44100 x 8 x 5356seconds) x 2 = 3,779,193,600bits = 472,399,200Bytes = 461,327.343KB =
450.51MB
8
1024
1024
Video File 95,325.293MB + Audio File 450.51MB = 95,775.803MB = 93.53GB
1024
16
Calculating Video and Audio File Sizes: Answers continued
PROBLEM 4: Calculate the Total File Size for a Video Clip. It was shot with one of the new 4K cameras.
Run time is 48 seconds. It is 10-bit uncompressed raw video at a resolution of
1920 x 1920 at 60fps. Audio is 24-bit mono at 96Khz.
48sec x 60fps = 2880 frames 1920H x 1920V x 10bit = 36,864,000bits = 4500KB per
frame
8 x 1024
8192
2880 frames x 4500KB per frame = 12,960,000KB = 12,656.25MB = 12.359GB
1024
1024
96000Hz x 24-bit x 48sec = 110,592,000bits = 13,824,000KB = 13,500MB = 13.18GB
8
1024
1024
Video File 12.359GB + Audio File 13.18GB = 25.54GB
17
Name
Period
Calculating Production Costs
Objective:
Calculate the cost of an Audio Video Project and determine how much it will cost a small business to produce
the video.
The Scenario:
Sam is a new startup video production company. His new production company has limited equipment and
resources. However, he has built a reputation for creating quality work and is on the verge of growing his
Sam has been asked to provide a proposal to a local municipality for an informational video on Trash Collection.
The video is to air on the local municipality cable TV channel. The video must be produced to broadcast
standards. Sam will be responsible for shooting and editing the video only. All Pre-production requirements
such as script, storyboards and permissions will be the responsibility of the municipality. He has been given
guidelines stating that he will have only 5 full workdays to shoot the required video and 10 days to edit and
complete the project. These days are consecutive and not concurrent. In other words, 15 days total to compete
the project. Do not include weekends.
GOAL:
Sam needs to determine what his actual production costs are going to be to his business for this specific project.
These are the costs that he must incur and manage before the municipality pays the bill. He must decide if his
small businesses budget can facilitate production costs associated with this project.
Problem 1: Figure out equipment needs and how much it will cost to rent all the equipment
Sam needs to rent the following equipment in order to meet the Broadcast Standard specified by the
municipality cable TV Station. Sam will lease the Camera for 6 days. I needs one day to get familiar with its
operation. He will lease the tripod and dolly, pro light kits, boom mic with pole and C stands with sand bags for 5
days. He will lease the Non-Linear Computer Editing Station for 12- days, also to become familiar with its
operation. Rental Company 2 offers a 10% discount if you rent the equipment by the week instead of by the day.
A week rental (7 days with the equipment) is defined as 5 individual Day Rates. Day Rate Price is for individual
Items.
Equipment Needed
1- Pro Tripod and Dolly
2- Pro Light Kits
1 – Boom Mic and Pole
4 – C stands with sand bags
1 – Non-Linear Computer Editing Station
Rental Company 1
(DAY RATE)
\$340.00
\$210.00
\$107.00 ea.
\$96.00
\$ 19.00 ea.
\$495.00
Rental Company 2
(DAY RATE)
\$365.00
\$195.00
\$112.00 ea.
\$100.00
\$23.00 ea.
\$575.00
18
How much is Sam’s Rental costs from Rental Company 1?
How much is Sam’s Rental costs from Rental Company 2?
How much is Sam’s Rental costs from Rental Company 2 if he utilizes the 10% discount for weekly rentals?
Which Company provides Sam with the best deal and why? What is his final rental cost?
Problem 2: Figure what his labor costs will be based on the schedule that the municipality has provided –
Sam will need help to shoot and edit the video. He employs 1- Video Assistant at \$8.75 per hour and 1-Audio
Assistant at \$7.85 per hour. Sam is required to pay 3.25% payroll tax (employer contribution) and 1.25%
unemployment tax on both employees. Sam needs to earn \$25.00 an hour and pays 6.50% in payroll tax and 0%
in unemployment tax. Sam will use both employees for the 5-day video shoot. Sam will use the Video Assistant
for 7- of the 10 editing days and the Audio Assistant for 4 of the 10 editing days. Sam will work all 15 days of the
project.
What is the total Labor cost for the Video Assistant?
What is the total Labor cost for the Audio Assistant?
What is the total Labor cost for Sam?
How much total does Sam pay the government in payroll taxes?
How much total does Sam pay for unemployment tax?
What is Sam’s Total labor cost for this project?
Problem 3: How much will it cost Sam’s company to produce the Trash Video for the municipality?
19
Problem 1: Figure out equipment needs and how much it will cost to rent all the equipment. –
Sam needs to rent the following equipment in order to meet the Broadcast Standard specified by the
municipality cable TV Station. Sam will lease the Camera for 6 days. He needs one day to get familiar
with its operation. He will lease the tripod and dolly, pro light kits, boom mic and pole and C stands
with sand bags for 5 days. He will lease the Non-Linear Computer Editing Station for 12- days, also to
become familiar with its operation. Rental Company 2 offers a 10% discount if you rent the equipment
by the week instead of by the day. A week rental (7 days with the equipment) is defined as 5 individual
Day Rates. Day Rate Price is for individual Items.
Equipment Needed
1- Pro Tripod and Dolly
2- Pro Light Kits
1 – Boom Mic and Pole
4 – C stands with sand bags
1 – Non-Linear Computer Editing Station
Rental Company 1
(DAY RATE)
\$340.00
\$210.00
\$107.00 ea.
\$96.00
\$ 19.00 ea.
\$495.00
Rental Company 2
(DAY RATE)
\$365.00
\$195.00
\$112.00 ea.
\$100.00
\$23.00 ea.
\$575.00
How much is Sam’s Rental costs from Rental Company 1? \$10,955.00
Formula: Multiply the # of Days Needed by the Day Rate. Where applicable multiply quantity needed
1-Broadcast Quality Video Camera – 6days x \$340.00per day = \$2040.00
2- Pro Light Kits – 5days x \$107.00 x 2qty = \$1070.00
Total rental cost from Rental Company 1 is the sum of all Rental Costs per Item
Equipment Needed
1- Pro Tripod and Dolly
2- Pro Light Kits
1 – Boom Mic and Pole
4 – C stands with sand bags
1 – Non-Linear Computer Editing
Station
TOTAL Cost from Company 1
# of
Days
Needed
6
5
5
5
5
12
Rental Company 1
(DAY RATE)
Rental Cost per Item
\$340.00
\$210.00
\$107.00 ea.
\$96.00
\$ 19.00 ea.
\$495.00
\$2040.00
\$1050.00
\$1070.00
\$475.00
\$380.00
\$5940.00
\$10955.00
How much is Sam’s rental costs from Rental Company 2? \$12,145.00
20
Equipment Needed
1- Pro Tripod and Dolly
2- Pro Light Kits
1 – Boom Mic and Pole
4 – C stands with sand bags
1 – Non-Linear Computer Editing
Station
TOTAL Cost from Company 2
# of Days
Needed
6
5
5
5
5
12
Rental Company 2
(DAY RATE)
\$365.00
\$195.00
\$112.00 ea.
\$100.00
\$23.00 ea.
\$575.00
Rental Cost per Item
\$2190.00
\$975.00
\$1120.00
\$500.00
\$460.00
\$6900.00
\$12145.00
How much is Sam’s Rental costs from Rental Company 2 if he utilizes the 10% discount for weekly
rentals? \$9567.00
Formula: The discount states if you rent it for 5 DAY RATES you get a 10% discount and you get to
keep the equipment for 2 additional days. To calculate the weekly rate: Multiply Day Rate x 5; next
Multiply the answer times 10%; Next subtract the 10% answer from the Day Rate Total. Where
applicable multiply by quantity needed and/or additional weeks.
1-Broadcast Quality Video Camera – 5 x \$365.00 Day Rate = \$1825.00 next \$1825.00 x .10(10%) =
\$182.50
next \$1825.00 - \$182.50 = \$1642.50 Weekly Rate.
Equipment Needed
# of
Days
Needed
Rental
Company 2
(DAY RATE)
Rental Cost per
Item
(Day Rate)
Weeks
Needed
Camera
1- Pro Tripod and Dolly
2- Pro Light Kits
1 – Boom Mic and Pole
4 – C stands with sand bags
1 – Non-Linear Computer Editing
Station
TOTAL Cost from Company 2
6
\$365.00
\$2190.00
1
Rental
Cost per
Item
(Weekly)
\$1642.50
5
5
5
5
12
\$195.00
\$112.00 ea.
\$100.00
\$23.00 ea.
\$575.00
\$975.00
\$1120.00
\$500.00
\$460.00
\$6900.00
1
1
1
1
2
\$877.50
\$1008.00
\$450.00
\$414.00
\$5175.00
\$12145.00
\$9567.00
Which Company provides Sam with the best deal and why? What is his final rental cost? \$9567.00
Company 2 provides the best deal. With the 10% discount not only is his total rental cost cheaper but
he gets additional time with ALL of the leased equipment.
21
Problem 2: Figure what his labor costs will be based on the schedule that the municipality has
provided –
Sam will need help to shoot and edit the video. He employs 1- Video Assistant at \$8.75 per hour and 1Audio Assistant at \$7.85 per hour. Sam is required to pay 3.25% payroll tax (employer contribution)
and 1.25% unemployment tax on both employees. Sam needs to earn \$25.00 an hour and pays 6.50%
in payroll tax and 0% in unemployment tax. Sam will use both employees for the 5-day video shoot.
Sam will use the Video Assistant for 7- of the 10 editing days and the Audio Assistant for 4 of the 10
editing days. Sam will work all 15 days of the project. All days or standard 8-hour workdays.
What is the total Labor cost for the Video Assistant? \$877.80
\$8.75wage x 8hours worked per day x 12days(5 for the shoot + 7 for Editing) = \$840.00
\$840.00 x .0325 (3.25% Payroll Taxes) = \$27.30
\$840.00 x .0125 (1.25% Unemployment Taxes) = \$10.50
\$840.00Wages + \$27.30Payroll Tax + \$10.50Unemployment Tax = \$877.80 Total Labor Cost for
employee
What is the total Labor cost for the Audio Assistant? \$590.63
\$7.85wage x 8hours worked per day x 9days(5 for the shoot + 4 for Editing) = \$565.20
\$565.20 x .0325 (3.25% Payroll Taxes) = \$18.37
\$565.20 x .0125 (1.25% Unemployment Taxes) = \$7.06
\$565.20Wages + \$18.37Payroll Tax + \$7.06Unemployment Tax = \$590.63 Total Labor Cost for
employee
What is the total Labor cost for Sam? \$3195.00
\$25.00wage x 8hours worked per day x 15days(5 for the shoot + 10 for Editing) = \$3000.00
\$3000.00 x .0650 (56.50% Payroll Taxes) = \$195.00
As an employer Sam does not pay unemployment on himself only his employees.
\$3000.00Wages + \$195.00Payroll Tax + \$0.00Unemployment Tax = \$3195.00 Total Labor Cost for
employer
How much total does Sam pay the government in payroll taxes? \$240.67
Video Assistant \$27.30 + Audio Assistant \$18.37 + Sam\$195.00 = \$240.67
How much total does Sam pay for unemployment tax? \$17.56
Video Assistant \$10.50 + Audio Assistant \$7.06 + Sam\$0.00 = \$17.56
What is Sam’s Total labor cost for this project? \$4663.13
Total Video Assistant \$877.50 + Total Audio Assistant \$590.63 + Sam \$\$3195.00 = \$4663.13
Problem 3: How much will it cost Sam’s company to produce the Trash Video for the municipality?
\$9567.00
Total Rental Costs + \$4663.13 Total Labor Costs = \$14,230.13
22
At this point is important to talk about how this is Sam’s cost to his business. This is how much he will
have to pay to do the project. This is NOT what he would ultimately bill the municipality for the project.
These are his COSTS.
23
Name
Period
Calculating a Bid
Objective:
Calculate the cost of a new project to determine what to charge the client.
Sonya has been offered a commission to create a 30 second commercial. She knows she can do the job
and has the equipment, but she has no idea what to charge. She wants to charge enough to cover her
expenses and make a profit, yet doesn't want to price herself above industry standards. She wants her
rates to be competitive with other production companies.
The first thing she does is research the industry standards for the final selling cost of a 30 second
commercial. She finds that the professional fees depend on size of the market that the commercial will
be seen in, its production quality and the reputation of the producer. Published rate for a completed
commercial range from \$3,000 to \$150,000. Sonya realizes she will be charging from the low end of
the range because she is not known in the industry.
Can she do a 30 second commercial for about \$3,000 and still make a profit?
She sits down and thinks of what it costs her to run her business.
She must consider
• equipment costs (computers, software, peripherals like scanners and printers, cameras, audio
equipment office supplies),
• materials (storyboards, pencils, recording media),
• the cost of professional sound design and voice actors,
• the cost of initial meetings, storyboards and preplanning,
• the time it takes for her to shoot and edit the commercial,
• the cost of client revisions and updates,
• the cost of travel time and travel expenses,
• the time it takes for final editing and distribution to media outlets,
• and a profit.
24
Here are the numbers she comes up with.
• Her home office is 25% of her apartment. The Internal Revenue Service will only allow her to
deduct the part of her apartment she is actually using for business, not the entire apartment.
The cost of her apartment (rent, utilities, insurance) is \$1,500 per month.
• Her computer cost her \$1,500 and must be replaced every 2 years.
• Her DSLR Camera cost about \$1,000 and must be replaced every 2 years.
• Her software is leased at \$50 a month.
• Recording media for one commercial will run about \$75.
• Her office expenses are health insurance (\$550/month), business licenses and professional
(\$25/month), cell phone plan (\$75/month), high speed internet hook up (\$75/month), office
supplies/postage (\$125/month)
• The standard gross (pre-tax) income for a video producer at her level is \$35,000 a year.
• She finds that the industry standard states that 1 second of the final video production takes 8
hours to create.
• She has found that for every hour of production work she should expect another 2 hours in preproduction and post-production editing.
• A professional voice actor has quoted her \$500 for the voice over.
• Sound effects and background music are going to cost \$1,200.
• Sound design and mixing will cost \$750.
• The markup for hiring subcontractors and buying music rights is 30%.
• She will expect at least 5 client meetings during the course of production that will take at least
3 hours each in travel time and meeting time.
• She should add 10% to the estimated number of total production hours to cover unexpected
revisions and problems.
25
Problem 1:
What is the daily and hourly overhead rate?
Problem 2:
project?
How long should it take for Sonya to pre-produce, produce, and post-produce this
Problem 3:
What is Sonya's hourly rate?
Problem 4:
project?
What is Sonya's total business cost per hour? What is the cost per hour for the
Problem 5:
project?
Sonya has the hourly costs figured out, so what is the total estimated cost of the
26
Problem 1:
What is the daily and hourly overhead rate?
Rent = \$1,500 x .25 = \$375/month
Equipment = [\$1,500 (computers) + \$1,000 (peripherals)] / 24 = \$104.16/month
Software = \$50/month
Office Expenses = [\$550 (medical insurance) + \$50 (professional dues/fees) + \$100 (advertising) + \$25
(answering service) + \$75 (cell phone) + \$75 (internet) + \$125 (office supplies) = \$1,000/month
\$375 + \$104.16 + \$50 + \$1,000 = \$1,529.16 per month
Her daily overhead rate for a 5 day work week is \$76.46 per day.
\$1,529.16/ 20 work days per month = \$76.46/day. \$76.46/8 hours = \$9.56/hour
Her hourly overhead rate for an 8-hour day is \$9.56 per hour.
Problem 2:
project?
How long should it take for Sonya to pre-produce, produce, and post-produce this
Industry standard is 8 hours per 10 seconds. A 30 second commercial should take 24 hours to produce.
Pre-production and post-production should be another 48 hours of billable time. She can expect 15
hours of meetings and travel time. She should add 10% of the total time to cover unexpected glitches
and revisions.
(24 + 48 + 15) + (24 + 48 + 15).10 = 95.7 hours
Sonya estimates that she will put 95.7 hours into this project.
Problem 3:
What is Sonya's hourly rate?
Sonya wishes to make \$35,000 a year in gross salary. Her hourly rate is \$35,000 divided by 52 weeks to
get her weekly income (note that this doesn't give her any holiday or sick time off!) and that number is
divided by 40 hours a week to get her hourly rate.
(\$35,000/52)/ 40 = \$16.83/hour
Problem 4:
project?
What is Sonya's total business cost per hour? What is the cost per hour for the
Sonya's business cost per hour is overhead plus salary. The cost of the project is her total cost per hour
times the number of hours in the project. Sonya's cost per hour is \$9.56 + 16.83 = \$26.39/hour
The hourly cost of the project is \$26.39 x 95.7 = \$2,525.52
27
Problem 5:
project?
Sonya has the hourly costs figured out, so what is the total estimated cost of the
The total costs are the hourly costs of production and overhead (\$2,525.52), \$500 for the voice over,
sound effects and background music are \$1,200 and hiring professional sound design and mixing is
\$750. Ten percent is added for profit. There is a 30% markup for hiring subcontractors and buying
music/sound rights.
(\$2,525.52 + \$1,200 + \$500 + \$750) + (\$2,525.52 + \$1,200 + \$500 + \$750)/.10 + (\$1,200 + \$500 +
\$750)/.30 =
\$4,975.52 + \$497.55 + \$735 = \$6,208.07
Sonya's total estimated cost for a 30 second commercial in her market is \$6,208.07.
She cannot do a commercial as specified and sell her services for \$3,000, but upon investigation she
realizes that no one else can, either, and she learns that those who are charging \$3,000 are not
producing a quality product and are not getting new commissions. She submits a bid at \$6,500 and it is
accepted.