Chips home brew whiskey management forecasts that if the

Reference no: EM13394405

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 bottoles per year, whereas salse will be 91 percent as high if the price is raised 18 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?At $20 per bottle the Chip's FCF is $.

Reference no: EM13394405

Questions Cloud

In order to make the appropriate decision the manager : a company purchased goods on credit with credit terms of 315 n45. although the company does not have cash available to

Find the order size for company a in given scenario that : company as demand is uniform throughout the year and totals 19000 units per year. ordering costs total 39 per order.

Compute the cost of the ending inventory under each of : during april leary company sold 1000 units of product q. its beginning inventory and purchases during the month are

Determine the impact of the companyrsquos mission vision : select a publicly traded corporation for which you would like to work or are currently working.research the corporation

Chips home brew whiskey management forecasts that if the : chips home brew whiskey management forecasts that if the firm sells each bottle of snake-bite for 20 then the demand

Examine the organizational structure and culture of the : organizational leaders are expected to create realistic visions for their companies and the employees they guide but

In a two page paper report your top three strengths and how : 1.take three minutes to list as many positive emotions and negative emotions as you possibly can. what is your ratio of

Discuss how presentations that are well planned organized : discuss how presentations that are well planned organized and effectively delivered can help a company win customers.

Describe and evaluate coca-colarsquos marketing and : read cases 1-3 and 6-6 on coca-cola. assume the role of a management consultant reporting to the ceo and board of

User Account

All Pages