What will be the effect of the price increase on the firm’s FCF for the year? 

The effect of the price increase on Chip’s Firm’s Free Cash Flow (FCF) for the year will be an additional $20,850. Calculate this by subtracting all the variable and fixed cost from the revenue increase gained through raising prices. Demand for 15 000 bottles at 13% more results in an increased sales rate of 17 700 bottles (15000 x 0.81) = 12150+15000=27150. The additional income would be 177,000 USD. (17700 x ten = 1770 + 100,000 = 17770).

In the case of costs related to production, it is necessary to include expenses like variable costs that are 10 USD per bottle. The result would be 175,000USD.
Finally after taking into account both revenues and expenses net cash flow can be calculated by subtracting total outflows from total inflows – this results in 20850 USD (1770000-1752500=20500+3000=20800+50=20850)

In conclusion it appears that raising prices can have beneficial effects on free cash flow as long as one takes into consideration what changes may occur due to new levels of demand – assessing all potential risks beforehand helps ensure that firms make informed decisions when making pricing decisions while also maximizing their profits over time.