‘Freshju’ is a trading company, selling bottled juices made by other manufacturers. Now, it planned to sell its juices across India. For this,…

‘Freshju’ is a trading company, selling bottled juices made by other manufacturers. Now, it planned to sell its juices across India. For this, ‘Freshju’ decided to enter into ‘Juice manufacturing’. It also has ambitious plans to export its juices to other countries in the future. To meet anticipated higher demand in future, the company set-up a larger manufacturing unit. The Chief Executive Officer, Ravinder, ordered automatic juice-filling and bottling machines to increase speed, improve hygiene and for consistency in production. Since the investment was huge, instead of buying all new machinery ‘Freshju’ took some expensive machines on lease. They also collaborated with a nearby packaging unit to use their packing machines during peak-season. This helped ‘Freshju’ to manage seasonal surges in demand without investing in additional equipment that would remain underutilized during off season. Quoting lines from the above, identify and explain any four factors that will affect the fixed capital requirements of ‘Freshju’.