Stevens Hats management forecasts that it will sell 25,000 baseball caps next year. The firm buys its

Question:

Steven’s Hats management forecasts that it will sell 25,000 baseball caps next year. The firm buys its caps for $3 from the wholesaler and sells them for $15 each. If the firm will incur fixed costs plus depreciation and amortization of $80,000, then what is the percent increase in EBIT if the actual sales next year equal 27,000 caps?