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Problem 1: Mod Clothiers makes women's clothes. It costs S28 000 to produce 5000 pairs of polka-dot polyester pants. They have been unable to sell the pants at their usual price of $50.00. The company is evaluating two alternatives. They could sell the pants as is' for a total $15 000 or they could modify the pants and sell them for a total of $20 000. At what cost to modify each pair of pants. would Mod Clothiers be indifferent between the two alternatives?
A. $0.40
B. $0.50
C. $0.75
D. $1.00
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