Your company has purchased a new track hoe for 100000 the, Accounting Basics

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Your company has purchased a new track hoe for 100000 the

Question: Your company has purchased a new track hoe for $100,000. The track hoe can be billed out at $95.00 per hour, has an hourly operation cost of $33.00, and has a useful life of four years. At the end of four years the track hoe has a salvage value of $20,000. The operator cost is $27.00 per hour. Using a MARR of 21%, what is the minimum number of billable hours each year in order for your company to break even?

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Accounting Basics: Your company has purchased a new track hoe for 100000 the

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