Jaybird Company operates in a highly competitive market where the market price for its product is $70 per unit. Jaybird desires a $22 profit per unit. Jaybird expects to sell 7,000 units. Additional information is as follows:

Variable product cost per unit	$	22
Variable administrative cost per unit		15
Total fixed overhead		65,000
Total fixed administrative		38,000

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

Multiple Choice

• $35,950

• $2,050

• $45,000

• $30,100

• $26,000