Champion contractors completed the following transactions involving equipment. year 1 jan. 1 paid $270,000 cash plus $10,800 in sales tax and $1,800 in transportation (fob shipping point) for a new loader. the loader is estimated to have a four-year life and a $27,000 salvage value. loader costs are recorded in the equipment account. jan. 3 paid $3,000 to install air conditioning in the loader to enable operations under harsher conditions. this increased the estimated salvage value of the loader by another $900. dec. 31 recorded annual straight-line depreciation on the loader. year 2 jan. 1 paid $4,500 to overhaul the loader’s engine, which increased the loader’s estimated useful life by two years. feb. 17 paid $1,125 for minor repairs to the loader after the operator backed it into a tree. dec. 31 recorded annual straight-line depreciation on the loader.

Which of the following statements regarding the learning curve and economies of scale is accurate? answers: just as diseconomies of scale are presumed to exist if a firm gets too large, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows. where diseconomies of scale are presumed to exist if a firm gets too large, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows. where diseconomies of scale are presumed to exist if a firm gets too small, there is no corresponding increase in costs in the learning-curve model as the cumulative volume of production grows. just as diseconomies of scale are presumed to exist if a firm gets too small, there is a corresponding increase in costs in the learning-curve model as the cumulative volume of production grows.

When making broccoli cream soup, the broccoli and aromatics should be a. burned. b. simmered. c. puréed. d. sweated.

Special order carson manufacturing, inc., sells a single product for $36 per unit. at an operating level of 8,000 units, variable costs are $18 per unit and fixed costs $10 per unit. carson has been offered a price of $20 per unit on a special order of 2,000 units by big mart discount stores, which would use its own brand name on the item. if carson accepts the order, material cost will be $3 less per unit than for regular production. however, special stamping equipment costing $4,000 would be needed to process the order; the equipment would then be discarded. assuming that volume remains within the relevant range, prepare an analysis of differential revenue and costs to determine whether carson should accept the special order. use a negative sign with answer to only indicate an income loss from special order; otherwise do not use negative signs with your answers.