A company is to carry out a major modernization of its factory commencing in two weeks, time. During the modernization, which is expected to take four weeks to complete, no production of the company's single product will be possible. The following additional information is available:

(a)Sales/Debtors: Demand for the product at RM100 per unit is expected to continue at 800 units per week, the level of sales achieved for the last four weeks, for one further week. It is then expected to reduce to 700 units per week for three weeks, before rising to a level of 900 units per week where it is expected to remain for several weeks. All sales are on credit, 50 per cent being received in cash in the week following the week of sale and 50 per cent in the week after that.

(b)Production/Finished goods stock (inventories): Production will be at a level of 1200 units per week for the next two weeks. Finished goods stock is 2800 units at the beginning of week 1.

(c)Raw material stock: Raw material stock is RM36 000 at the beginning of week 1. This will be increased by the end of week 1 to RM40 000 and reduced to RM10 000 by the end of week 2.

(d)Costs