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(Break.even analysis) Niece Equipment Rentals of Del Valle Texas, has recently been approached about the prospect of purchasing a large construction crane. The crane rents

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(Break.even analysis) Niece Equipment Rentals of Del Valle Texas, has recently been approached about the prospect of purchasing a large construction crane. The crane rents for $520 an hour but operator, fuel Insurance and miscellaneous expenses run 5195 an hour when the crane is in use. The company owner estimates that it will cost $950 a month to store and maintain the crane and the annual depreciation expense is $53,000 a. Calculate the accounting break-even number of annual rental hours needed to produce zero operating earnings from the crane (before taxes) b. Calculate the cash break even point. If we ignore non-cash expenses such as depreciation in the bronk von calculation, how many hours must the crane be rented in order to break even on a cash basis? c. Why do we have two different break-even points? What does each one tell you? a. The accounting break-even units of production is hours (Round to the nearest whole number)

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