4 Exercise 11-6 (Algo) Managing a Constrained Resource (LO11-6) Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products for exceeds its monuicturing capacity. The bottleneck (or constraint in the production process is upholstery labor hours, Information conceming three of Portsmouth's products appears below: Selling price per shit Variable est pers Recliner $1,378 5850 Sofa $1,740 $1,200 Love Seat $1,520 $1,200 Upholstery labor-hours per unit 8 hours 12 hours 4 hours Required 1 Portsmouth is considering paying in upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay 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 price of $42 per hour. The management of Portsmouth is confident that the uphorstering company's work is high quality and their 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 eam if it bires the nearby upholstering company to make Love Seats? 3 Should Portsmouth tire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required Portsmouth is dering poying its upholstery laborers hourly compensation, in addition to their Osual salaries, to work overtime Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the uchostery shop open after normal working hours? Required 2> Complets this question by entering your answers in the tabs below. 3 Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? References Required 1 Required 2 Required 2 > 14 Complete this question by entering your answers in the tabs below. Required Required A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $42 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quidde as Portsmouth wamen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it hires the nearby upholstering company to make Love Seats? Addel ge Required 1 Required 3> Complete this question by entering your answers in the tabs below. Should Pirtsmouth hire the rearty vphilstaring company? OY No