A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
Correct Answer
C) $246,000
Startup reserve equals monthly overhead multiplied by the reserve months.
Why This Is the Correct Answer
Startup reserve equals monthly overhead multiplied by the reserve months.
Why the Other Options Are Wrong
Option A: $61,500 operations startup note
$61,500 operations startup note is below the supported result for startup reserve; it likely uses the wrong base, period, or account bucket.
Option B: $65,500 startup control file
$65,500 startup control file is below the supported result for startup reserve; it likely uses the wrong base, period, or account bucket.
Option D: $307,500 license setup record
$307,500 license setup record is above the supported result for startup reserve; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Prepares Winter money test: bucket before math for startup reserve.
Reference Hint
Open-book path: tab Contractor's Manual, 2025 to Startup budgeting and working-capital planning; verify the startup duty, registration, or financial setup before answering.
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