Fixed advertising expenses equal 100000 per year each table


King Furniture Company pays annual rent of $250,000 per year and pays its administrative staff salaries totalling $300,000 per year. The company builds wooden tables. Each table requires $60 of wood, three hours of labor at $30 per hour, and variable overhead costs of $25. Fixed advertising expenses equal $100,000 per year. Each table sells for $500. What is King Furniture's break-even output level?

A) 5,652 tables B) 1,300 tables C) 2,000 tables D) 3,715 tables

 

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Finance Basics: Fixed advertising expenses equal 100000 per year each table
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