A switchgear package costs $128,000 and requires a 25% deposit. What cash requirement should be forecast?
Correct Answer
B) $32,000
Multiply package cost by deposit percentage.
Why This Is the Correct Answer
Multiply package cost by deposit percentage.
Why the Other Options Are Wrong
Option A: $25,600
$25,600 is below the supported result for deposit forecast; it likely uses the wrong base, period, or account bucket.
Option C: $38,400
$38,400 is above the supported result for deposit forecast; it likely adds an unsupported amount or compares the wrong financial base.
Option D: $96,000
$96,000 is above the supported result for deposit forecast; it likely adds an unsupported amount or compares the wrong financial base.
Memory Technique
Multiply and package live in different drawers; Plans Early tells which opens.
Reference Hint
Open-book path: tab Principles and Practices of Commercial Construction, 11th Edition, 2024 to Procurement planning; long-lead deposits; verify the quantity, Florida notice/permit rule, or field-control record before answering.
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