Question: Answer please View Polloies Current Attempt in Progress Monty's Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20,
View Polloies Current Attempt in Progress Monty'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. Sales will equal only 88 percent of this amount if the price is ralsed 20 percent. Moatys varlable cost per bottle is $10, and the total fixed cash cost for the year is $100.000. Depreciatian and amartization charges are 520,000 and the fimhas a 30 percent marginal tax rate. Maragement anticipates an increased working capital nced of $3.000 for the yoar. What will be the elfect of a 20 percent price inctease on the forin's FCF for the year? Ercei Template NNote: This template inchudes the problem statement as it appears in your textbook. The problem assigned to you here may have different valoes. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem./ At 520 ner botte the Montys FCF is $ and at the new price Monty's FCF is 5 Byincreasing the price of abottle by 20 percent, the FCF by 5
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