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Save Homework: Chapter 13 Homework Score: 0 of 3 pts P13-11 (similar to) 2 of...

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Save Homework: Chapter 13 Homework Score: 0 of 3 pts P13-11 (similar to) 2 of 2 (0 complete HW Score: 0%, 0 of 9 pts 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 cranerents for $490 an hour but operator, fuel insurance and miscellaneous expenses run 5204 an hour when the crane is in use. The company owner estimates that will cost $950 a month to store and maintain the crane and the annual depreciation expense is $55,000 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 lgnore 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 to 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 parts 2 remaining Check

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