The Free Indeed Company manufactures shoes that are sold through discount houses. The shoes are sold for $20 each pair; the fixed costs are $100,000 for up to 30,000 pairs of shoes; variable costs are $15 per pair of shoes.

(1) What is the firms EBIT at sales of 30,000 pairs of shoes?

(2) What is the quantity at break-even point?

(3) If the selling price is changed from $20 to $25 each pair, they can increase sales from 30,000 units to 12,000 units. Should it change the price?