Project Runway, Austin Scarlett, Kenley Collins

Barbara Nitke/Lifetime

What would you say is worse? Being the first to get eliminated or getting the boot right before the finale?

On tonight's Project Runway, one of the four remaining designers (Austin Scarlett, Kenley Collins, Mondo Guerra and Michael Costello) got thisclose to making it in the final three.

But before we get to that, let's talk about the contestants' challenge, which involved working with a "classic New York fashion success story," Nanette Lepore.

This ready-to-wear challenge required the designers to make a look that was "irresistible, feminine and timeless" within Lepore's budget. Basically the moral of this lesson was to become business-savvy. Whoever won would get their garment produced in a factory to be sold at Nanette's stores nationwide.

After sketching (except Mondo, who doesn't sketch), each designer had a briefing with Lepore and her coster, who appraised how much it would cost to mass produce the piece and how much it would sell for. Overall, the retail price for all of the garments were in the hundreds, but after calculating production costs, the designers were left with a budget ranging from $30-$65 (depending on their design) for the necessary fabrics.

Reality check!

Luckily, everyone was able to get the fabrics they needed and still stay within budget. Well, they didn't have a choice, but there weren't any huge issues.

Kenley stood by her loose-fitted peacock print dress (even though Lepore said it wouldn't sell as easily as fitted clothing would), Austin made a very Austin-esque bright coat, Michael put together a bohemian dress with a plunging neckline that we've seen from him before, and Mondo—who constantly felt defeated—made a dress with five different fabrics striped together.

After a (short) runway show, the judges chose Mondo (!) as the challenge winner. Sadly, Kenley's "stubborness" caused her to get eliminated before finals.

Was the right person snipped? Give us your stylish take in the comments!

GALLERY: London Fashion Week: Spring 2012

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