- Asia Coffee (AC)
(a) State two features of a cooperative. [2]
(b) Using the data in Table 4:
(i) calculate, for AC, the production costs variance, W, and state if it is adverse or favourable (no working required); [1]
(ii) calculate, for AC, the actual marketing costs, X (no working required); [1]
(iii) calculate, for AC, the budgeted management costs, Y (no working required); [1]
(iv) calculate, for AC, the profit for period variance, Z, and state if it is adverse or favourable (no working required). [1]
(c) The coffee market in Cambodia has a total value of $32 million per year. Calculate the total market share for AC’s coffee in Cambodia based on actual sales revenue in Table 4 (show all your working). [2]
(d) Explain why AC’s board of directors should be concerned by the information in Table 4. [2]