Jaybird Company operates in a highly competitive market where the market price for its product is $140 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 $ 23 Overhead $ 45,000

Direct labor 24 General and administrative 18,000

Overhead 22

General and administrative 28

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

$48,500

$59,500

$65,000

$58,000

$68,000