Problem:
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.
Required:
Question: 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
Note: Explain all steps comprehensively.