# Chip’s Home Brew Whiskey

**smartwork**

**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.)**

- 6 years ago

**Chip’s Home Brew Whiskey**

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NOT RATED**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 …8 years ago### Price Effect Chip’s FCF

NOT RATEDChip’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 …

7 years ago### ACC- Chip’s Home Brew Whiskey management

NOT RATEDChip’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 …

7 years ago### Chipâs Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand...

NOT RATEDChip’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 …

7 years ago### Chipâs Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand...

NOT RATEDChip’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 …

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

NOT RATEDChip’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 …

5 years ago