Answer Happy

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 Variable administrative cost per unit Total fixed overhead Total fixed administrative 15 10 45,000 18,000 Required: Show all work, all calculations. a) Determine the target cost for Jaybird's product in order for it to achieve $15 profit per unit. . b) To achieve the target cost per unit, by how much must Jaybird reduce total expenses?