5 66 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 constrainty in the production process is upholstery labor-hours. Information concerning three of Portsmouth's upholstered chairs appears below Recliner Sofa Love Seat Selling price per unit 3,340 1,750 $ 1,475 Variable cost per unit $ Bees 1.1505 1,050 Upholstery labor-hours per unit 10 hours 12 hours 5 hours bons Hot 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 solas, 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 $44 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 Required 2 Itaquired 5 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 now 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 544 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? 5 Complete this question by entering your answers in the tabs below. Required: Required 2 Required 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? Maximum overtimo promium per hour Required 2 > 5 Check my work 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 Asmall nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $44 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 con Portsmouth earn if it hits the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company 56 Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required) A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $44 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 irit hires the nearby upholstering company to make love Seats? Show less Additional contribution murgin par hour Required 1 Required 3 > 5 Check my work Assuming that this extra time would be used to produce sotas, up to now 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 544 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 con Portsmouth earn if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth nice the nearby upholstering company? 66 int Complete this question by entering your answers in the tabs below. rece Required Required Required 3 Should Portsmouth hire the nearby upholstering company? OYes ON Required 2
