4 Help Save & Ext Su Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's upholstered chairs appears below: Check my w nts Selling price per unit Variable cost per unit Upholstery labor-hours per unit eBook Recliner Sofa Love Seat $ 1.412 $ 1,700 $ 1,460 $ 800 5 1,150 $ 950 9 hours 11 hours 6 hours Required: 1. 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 premium 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 $47 per hour. The management of Portsmouth is confident that this upholstering 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 earn if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below Required 1 Required 2 Required 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 premium per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? at a price of $47 per hour. The management w ys work is high quality and their craftsmen can work as quickly as anismen 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? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Portsmouth is considering paying its upholstery laborers Tourly 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 premium per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? Maximum overtime premium per hour Required 2 > vuth at a price of $47 per hour. The manag bligh quality and their craftsmen can work as quickly as Puistering jobs such as the Love Seat. How much additional contribution margin fires the nearby upholstering company to make Love Seats? Uulu Portsmouth hire the nearby upholstering company? eBook bearby upholsteriobs such as the Lawty and their craft price of $47 per make Love Seats? additional contribution as Hint Complete this question by entering your answers in the tabs below. Print References Required 1 Required 2 Required 3 A small nearby upholstering company has offered to upholster furniture for Portsmouth at a fixed charge of 547 per hour. The management of Portsmouth is confident that this upholstering 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 earn if it hires the nearby upholstering company to make Love Seats? Show less hown craft fident thoffered Additional contribution margin per hour
