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H NIN Problem 13-11 Niece Equipmcat Rentals of Del Valle, Texas, has recently been approached about the prospect of purchasing a large construction crane. Owner

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H NIN Problem 13-11 Niece Equipmcat Rentals of Del Valle, Texas, has recently been approached about the prospect of purchasing a large construction crane. Owner Al Niece estimates that the crane will rent for $500 an hour, but operator, fuel, insurance, and miscellaneous expenses run $200 an hour when the crane is in use. The company owner estimates that it will cost $1,000 a month to store and maintain the crane, and the annual depreciation expense is $50,000. Complete the steps below using cell references to given data or previous calculations. In some cases, a simple cell reference is all you need. To copy/paste a formula across a row or down a column, an absolute cell reference or a mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the use of that function. Do not type in numerical data into a cell or function. Instead, make a reference to the cell in which the data is found. Make your computations only in the green cells highlighted below. In all cases, unless otherwise directed, use the earliest appearance of the data in your formulas, usually the Given Data section. . 5 7 8 9 Given Data: Price per an hour $500.00 Variable cost per hour $200.00 Fixed costs per month $1,000.00 Depreciation expenses per year $50,000.00 Months in a year 12 a. Calculate the accounting break-even number of annual rental hours needed to produce zero operating earnings from the crane (before taxes) 10 11 13 14 15 16 Fixed costs other than depreciation per year Accounting break-even point b. Calculate the cash break-even point. If we ignore noncash expenses such as depreciation in the break-even caleulation, for how many hours must the crane be rented in order to break even on a cash basis? 17 IE Cash break-even point 20 25 22 24 25 25 27 20 Requirements 1 Start Excel 2 In cell D14, by using cell references, calculate the fixed costs other than depreciation per year. (1 pt.) 3 In cell Dis. by using cell references, calculate the accounting break-even number of annual rental bours (1 pt.) 4 In cell D19, by using cell references, calculate the cash break-even point of annual rental hours (1 pt.) 5 Save the workbook. Close the workbook and then exit Excel Submit the workbook as directed

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