Jaybird Company operates in a highly competitive market where the market price for its product is $50 per unit. Jaybird desires a 30% profit per unit. Jaybird expects to sell 5,000 units. Additional information is as follows:

Variable Costs per Unit		Fixed Costs (total)
Direct materials	$ 5	Overhead	$ 45,000
Direct labor	6	General and administrative	18,000
Overhead	4
General and administrative	10

To achieve the target cost per unit, Jaybird must reduce total expenses by how much?

Multiple Choice

$14,500

$3,500

$23,000

$20,000

$13,000