Question: 20. From the following data provided by N Ltd., compute the Working Capital requirement: Annual Production: 60,000 units Selling price per unit: `20 Per unit

20. From the following data provided by N Ltd., compute the Working Capital requirement:

Annual Production: 60,000 units Selling price per unit: `20 Per unit raw material cost: `12 Per unit labour cost: `2 Per unit overhead cost: 4 Raw materials in store: 2 months Processing period: 1 month Finished goods in store: 3 months Credit allowed to debtors: 3 months Credit allowed by creditors: 2 months Expected cash balance: `10,000 Wages and overheads are paid in the beginning of the month following. In production, all the required materials are charged in the initial stage and wages and overheads accrue evenly.

What is the effect of double shift working on the Working Capital requirement?

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