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4 Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products concerning three of Portsmouth's upholstered chairs
4 Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the company's products concerning three of Portsmouth's upholstered chairs appears below points Sofa Selling price per unit Variable cost per unit Upholstery labor-hours per unit 1,490 950 8 hours13 hours 6 hours 850 s 1,300 Required 1. Portsmouth is considering paying its upholstery laborers additional compensation to work overtime. Assuming that this extra time 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 $43 per hour The ma of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as mouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per ur can Portsmouth earn if it provides the raw materials to the nearby company and then hires it to upholster the Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs belovw Required 1Required 2 Required 3 A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $43 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their 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? craftsmen can work a Show lessA K Required 1 Required 3 >
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