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How to solve this? per per unit Fantastic Ltd. provides the following budget figure for the next year: Budgeted Production 2,60,000 units per annum Raw
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per per unit Fantastic Ltd. provides the following budget figure for the next year: Budgeted Production 2,60,000 units per annum Raw Material Rs. 100 per unit Labour Rs. 50 per unit Overheads (Including Depreciation Rs. 10 Rs. 40 unit per unit) Total Cost Rs. 190 per unit Profit Rs. 60 per unit Selling Price Rs. 250 Raw material is in stock, on average for 4 weeks. Materials are in process, on average for 2 weeks. Finished goods are in stock, on average for 6 weeks. Credit allowed by suppliers of raw material is 5 weeks. Credit allowed to customers is 8 weeks. Lag in payment of wages one and half week. Lag in payment of overheads is 1 week. It is necessary to hold in cash of Rs. 50,000. It may be noted that production is carried on evenly during the year and wages and overheads accrue similarly. Prepare a statement showing working capital requirement adding 5% to the computed figure for contingenciesStep by Step Solution
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