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please help me with the acual excel formulas Niece Equipment Rentals of Del Valle, Texas, has recently been approached about the prospect of purchasing a
please help me with the acual excel formulas
Niece Equipment 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. Given Data: Price per an hour S500.00 Variable cost per hour S200.00 Fixed costs per month $1,000.00 Depreciation expenses per year S50,000.00 Months in a year a. Calculate the accounting break-even number of annual rental hours needed to produce zero operating earnings from the crane (before taxes) 12 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 calculation, for how many hours must the crane be rented in order to break even on a cash basis Step by Step Solution
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