(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 $480 an hour but operator, fuel, insurance and miscellaneous expenses run $204 an hour when the crane is in use. The company owner estimates that it will cost $970 a month to store and maintain the crane and the annual depreciation expense is $48,000

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 break-even 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?

O P13-11 (similar to) Question (Break even analysis) No Com Rentals of Del Valle Tex has roomy been approached out the prospect of purchasing a construction crane The crane refox 60 an hour but prior tool insurance and miscelaneous expertos run 5204 an hour when the crane is in use the company owner stimates that wil cool 70 a month to store and mastan the new the open 54.000 a. Calitate the accounting break even number of anual rental hours needed to produce o spotating earnings from the crow befores) b. Calcule the cash break-even point we gore non-cash expenses much as depreciation in the calculation how many hours at the crane to rented on to break even on acaba? c. Why do we have two different break-even ports? What does each one tell you? a. The accounting break-even units of production is nous (Round to the nearest whole number)