Mod Clothiers makes womens clothes. It costs $33,000 to produce 3,000 pairs of polka-dot polyester pants. They have been unable to sell the pants at their usual price of $18.00. The company is evaluating two alternatives. They could sell the pants as is for $45,000 or they could modify the pants and sell them for a total of $75,000.

At what cost to modify each pair of pants would Mod Clothiers be indifferent between the two alternatives?

Select one:

a. $11

b. None of the above

c. $10

d. $3

e. $15