# Chip’s Home Brew Whiskey

Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for \$20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 86 percent as high if the price is raised 12 percent. Chip’s variable cost per bottle is \$10, and the total fixed cash cost for the year is \$100,000. Depreciation and amortization charges are \$20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of \$3,000 for the year. What will be the effect of the price increase on the firm’s FCF for the year? (Round answers to nearest whole dollar, e.g. 5,275.)

• Posted: 5 years ago
Chip’s Home Brew Whiskey

Purchase the answer to view it

Save time and money!
Our teachers already did such homework, use it as a reference!
• Not rated

### finace

 Problem 12.24
Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for \$20, then the demand for the product will be 15,000 bottles per year, whereas sales …

• Not rated

### Chipâs Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for \$20, then the demand...

Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for \$20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 93 …

• Not rated

### Price Effect Chip’s FCF

Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for \$20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 86 …

• Not rated

### ACC- Chip’s Home Brew Whiskey management

Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for \$20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 84 …

• Not rated

### Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle

Chip’s Home Brew Whiskey management forecasts that if the firm sellseach bottle of Snake-Bite for \$20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 86 …

• Not rated

### Chipâs Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for \$20, then the demand...

Chip’s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for \$20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 90 …