1. Maximum Over time premium per hour??

2. Additional contribution margin per hour??

3. Should Portsmouth hire the nearby upholstering company?? (yeso)

Portsmouth Company makes fine colonial reproduction furniture. Upholstered furniture is one of its major product lines and the bottleneck on this production line is time In the upholstery shop. Upholstering is a craft that takes years of experience to master and the demand for upholstered furniture far exceeds the company's capacity In the upholsterlng shop. The company's only variable cost is direct materials. Information concerning three of the company's upholstered chalrs appears below: Sofa Love seat $1,184 $1,7ee $1,45e 800 $1,2e0 $1,e5e 5 hours Reclinen Selling price per unit variable cost per unit Upholstery shop time required to produce one unit 6 hours 10 hours Required: 1. More time could be made avallable In the upholstery shop by asking the employees who work In this shop to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of a premlum should the company be willing to pay In terms of an overtime premlum per hour to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a fixed charge of $46 per hour. The management of Portsmouth Is confident that this upholstering company's work is high quality and thelr craftsmen can work as quickly as Portsmouth's own craftsmen on the simpler upholstering Jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it provides the raw materials to the nearby company and then hlres It to upholster the Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required 1Required 2 Required 3