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(Break-even analysis) Niece Equipment Rentals of Del Valle, Texas, has recently been approached about the...

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(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 $200 an hour when the crane is in use. The company owner estimates that it will cost $960 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

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