Scenario analysis: Chip’s Home Brew Whiskey forecasts that if it sells each bottle of Snake-Bite for...

Scenario analysis: Chip’s Home Brew Whiskey forecasts that if it sells each bottle of Snake-Bite for $20, the demand for the product will be 15,000 bottles per year, Chip’s variable cost per bottle is $10, and the total fixed cash cost for the year is $100,000. Depreciation and amortisation charges are $20,000, and the company is in the 30 percent tax rate. The company anticipates an increased working capital need of $3,000 for the next year. At $20 per bottle the Chip’s FCF is ______$. Chip’s predicts sales will be 92 percent as high if the price is raised 13 percent. At the new price Chip’s FCF is ________$.

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