Answer:
$76,000
Explanation:
If we are going to prepare a flexible budget we need to calculate how much Seaworthy should have spent in labor costs in order to produce 2,000 units:
labor cost = 2 hours per unit x $19 per hour x 2,000 units = $76,000
If we compare the flexible budget to Seaworthy's actual costs, we will find an unfavorable variance of $250,000 (=$326,000 - $76,000). Obviously something went wrong with Seaworthy's production.
It shows that individuals in that market are price sensitive as the demand for old navy jeans.
The difference between collaborative consumption firms is that ZILOK PROVIDES INVENTORY WHICH ARE PROVIDED BY PARTICIPATING CITIZEN SUPPLIERS WHILE CHEGG OWNS ITS OWN INVENTORY.
Collaborative consumption is an economy system of decentralized networks and market places which unlock the value of underused assets by matching consumers in a manner which bypass middlemen. It is also called sharing economy. Zilok and Chegg are examples of collaborative firms.
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