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please use the cell references, thank you.

G Problem 13-11 3 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 month to store and maintain the crane, and the annual depreciation expense is $50,000. owner estimates that it will cost $1,000 a 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 mixed cell reference may be preferred. If a specific Excel function is to be used, the directions will specify the 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. a row or down a column, an absolute cell reference or a use of U Given Data: Price per an hour Variable cost per hour Fixed costs per month Depreciation expenses per year 6 $500.00 7 $200.00 8 $1,000.00 $50,000.00 Months in a 10 12 year 11 a. Calculate the accounting break-even number of annual rental hours needed to produce crane (before taxes). operating earnings from the zero 12 13 nd a nete athoe thos dom T 13-11 C D F G Hi Given Data: Price per an hour Variable cost per hour Fixed costs per month Depreciation expenses per year Months in a year $500,00 $200,00 $1,000.00 $50,000,00 10 12 11 a. Calculate the accounting break-even number of annual rental hours needed to produce crane (before taxes). operating earnings from the zero 12 13 Fixed costs other than depreciation per year 14 Accounting break-even point 15 16 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? 17 18 Cash break-even point 19 20 21 Requirements 22

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