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What would be the effect on profit of modifying the pants

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Mod Clothiers makes women's clothes. It costs $28,000 to produce 5,000 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 of $15,000 or they could modify the pants at a cost of $3,000 and sell them for a total of $20,000.

Question 1: What would be the effect on profit of modifying the pants and selling them as opposed to selling 'as is'?

Reference no: EM132562177

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