The production capacity of Quick Profit Ltd is 5,20,000 units per annum. Due to power crisis, the company can operate at 80% of the capacity level. You are asked to ascertain the Working Capital Requirement at the current level of operation. Add 10% to your computed figure to allow for contingencies.

Other information:

1. Selling price – Rs. 20 per unit.
2. Elements of cost (per unit):
   1. Raw materials – 40% of selling price.
   2. Labour – 30% of selling price.
   3. Budgeted overhead – Rs. 32,000 per week. Overhead includes depreciation of Rs. 8,000 per week.
3. Planned stock will include 24,000 units of the finished goods.
4. Time-lag information:
   1. Raw materials in stores – 3 weeks.
   2. Materials will stay in process – 2 weeks.
   3. Credit allowed to debtors – 5 weeks.
   4. Credit allowed by creditors – 1 month.
   5. Lag in payment of wages and overhead – 15 days.

25% of sales may be considered to be for cash. Assume that the production is carried on evenly throughout the year, and wages and overhead accrue similarly.

A time period of 52 weeks is equivalent to a year and a month comprises 4 weeks.