(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 $470 an hour but operator, fuel, insurance and miscellaneous expenses run $201 an hour when the crane is in use. The company owner estimates that it will cost $980 a month to store and maintain the crane and the annual depreciation expense is $51,000 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? a. The accounting break-even units of production is hours (Round to the nearest whole number) Enter your answer in the answer box and then click Check Answer. 2 remaining Clear All Check