illustration 9: Samreen Enterprises has been operating its manufacturing facilities till 31.3.2013 on a single shift working with the following cost structure: Cost of Materials Wages (out of which 40% fixed) Overheads (out of which 80% fixed) Profit Selling Price Sales during 2012-13 - 34,32,000. As at 31.3.2013 the company held: Per Unit 7 6.00 5.00 5.00 2.00 18.00 Stock of raw materials (at cost) 36,000 Work-in-progress (valued at prime cost) 22,000 Finished goods (valued at total cost) 72,000 Sundry debtors 1,08,000 In view of increased market demand, it is proposed to double production by working an extra shift. It is expected that a 10% discount will be available from suppliers of raw materials in view of increased volume of business. Selling price will remain the same. The credit period allowed to customers will remain unaltered. Credit availed of from suppliers will continue to remain at the present level i.e., 2 months. Lag in payment of wages and expenses will continue to remain half a month. You are required to assess the additional working capital requirements, if the policy to increase output is implemented