x P13-11 (similar to) Question Help (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 5 199 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 $52.000 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 ans remaining Clear Type here to search O II (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 $199 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 $52,000 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 parts remaining Clear All Check Answer Type here to search