10. From the following data provided by a manufacturing enterprise, compute the Working Capital requirement to finance an activity level of 60%:

(i) Production capacity: 2,00,000 units p.a.

(ii) Selling price per unit: `25

(iii) Cost of raw materials: 40% of selling price

(iv) Cost of labour: 20% of selling price

(v) Overhead (including depreciation `1,20,000): `6,00,000

(vi) Planned stock will include raw materials for `1,50,000 and 20,000 units of finished goods.

(vii) Materials will stay in the process for 1 month.

(viii) 40% of purchases were made against cash.

(ix) 20% of sales were made against cash.

(x) Credit allowed to debtors: 1½ months.

(xi) Credit allowed by creditors: 2 months.

(xii) Lag in wage payment: ½ month.
(xiii) Bank Overdraft: `2,00,000 (xiv) Cash in hand: `82,000 (xv) Production is carried on evenly during the year and wages and overheads accrue in the same way.