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: $$\begin{array}{l}
\begin{array} { l l r }
\text { Variable product cost per unit}&\$15\
\text { Variable administrative cost per unit}&10\
\text { Total fixed overhead}&45,000\
\text { Total fixed administrative}&18,000
\end{array}
\end{array}$$To achieve the target cost per unit,Jaybird must reduce total expenses by how much?
A)$14,500
B)$3,500
C)$23,000
D)$20,000
E)$13,000

Question

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: $$\begin{array}{l}
\begin{array} { l  l r } 
\text { Variable product cost per unit}&\$15\
\text { Variable administrative cost per unit}&10\
\text { Total fixed overhead}&45,000\
\text { Total fixed administrative}&18,000
\end{array}
\end{array}$$To achieve the target cost per unit,Jaybird must reduce total expenses by how much?
A)$14,500
B)$3,500
C)$23,000
D)$20,000
E)$13,000

Quizplus · Accepted Answer

The Answer of 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: $$\begin{array}{l}
\begin{array} { l  l r } 
\text { Variable product cost per unit}&\$15\
\text { Variable administrative cost per unit}&10\
\text { Total fixed overhead}&45,000\
\text { Total fixed administrative}&18,000
\end{array}
\end{array}$$To achieve the target cost per unit,Jaybird must reduce total expenses by how much?
A)$14,500
B)$3,500
C)$23,000
D)$20,000
E)$13,000

Jaybird Company Operates in a Highly Competitive Market Where the Market