2. Chips Home Brew Whiskey management forecasts that if thefirm sells each bottle of Snake-Bite for $20 then the demand forthe product will be 15000 bottles per year whereas sales will be90 percent as high if the price is raised 9 percent. Chipsvariable cost per bottle is $10 and the total fixed cash cost forthe year is $100000. Depreciation and amortization charges are$20000 and the firm has a 30 percent marginal tax rate.Management anticipates an increased working capital need of $3000for the year. What will be the effect of the price increase on thefirms FCF for the year? (Round answers to nearest whole dollare.g. 5275.)
2. Chips Home Brew Whiskey management forecasts that if thefirm sells each bottl
March 18th, 2019 admin
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