Check my work 5 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 products appears below: Selling price per unit Recliner $1,198 $750 Sofa $1,740 $ 1,200 12 hours. Love Seat) $ 1,200 $ 800 Variable cost per unit Upholstery labor-hours per unit 8 hours 5 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 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 $41 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 rire 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 rate per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? 56 pints eBook Ask Print References ng puying in uplivi Ning mi Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour shoul 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 $41 per hou of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as qu Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contrib 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 rate per hour s the company be willing to pay to keep the upholstery shop open after normal working hours? Maximum overtime rate per hour 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate 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 Portsmouth is confident that this upholstering company's work is high quality and their craftsmen Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much add hour can Portsmouth earn if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? bok Complete this question by entering your answers in the tabs below. nt sk rint Required 1 Required 2 Required 3 rences A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $41 p management of Portsmouth is confident that this upholstering company's work is high quality and their cra quickly as Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much. contribution margin per four can Portsmouth earn if it hires the nearby upholstering company to make Lou Additional contribution margin per hour
