Shrimp Galore, a shrimp harvesting business in the Pacific Northwest, has a 30-year loan on its shrimp harvesting boat. The annual loan payment on its boat is $25,000. The boat is worth $500,000 and Shrimp Galore currently owes $300,000 on the loan. Last year, Shrimp Galore had total costs of $750,000 and their total revenue was $750,000. There are many other shrimp harvesters in the Pacific Northwest.

1. Shrimp Galore comes to you to ask whether they should increase their price to make a profit. What do you advise them? Explain.
2. They also ask whether they should quit the business. What do you advise them? Explain.