Jaybird Company operates in a highly competitive market where the market price for its product is $50 per unit. Jaybird desires a $15 profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows:     Variable product cost per unit$15 Variable administrative cost per unit 10 Total fixed overhead 45,000 Total fixed administrative 18,000   To achieve the target cost per unit, Jaybird must reduce total expenses by how much?

A. $20,000
B. $14,500
C. $3,500
D. $13,000
E. $23,000


Answer: D

Business

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