Dotty’s Designs makes women’s clothing. 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. The companu is evaluating two alternatives. They could sell the pants “as is” for a total of $15,000 or they could motify the parts by making them into shorts and sell them for a total of $20,000.At what cost to modify each pair of pants, would Dotty’s Designs be indifferent between the two alternatives?

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