er 11 Graded Homework Help Save & Elt Submit Chey were 5 Exercise 11-6 (Algo) Managing a Constrained Resource (LO11-6] book int 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 Recliner Love Hot Selling price per unit $ 1,322 12.050 $2.540 Variable cost per unit WOO 1.400 200 Upholstery Labor-hours per unit 9 hoor 13 4 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 compatybe 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 of a price of 548 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 Scat. How much additional contribution margin per hour can Portsmouth cam if it hures the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? orences Complete this question by entering your answers in the tabs below. Lidt ordou monework Help Save Exit Subra Check my work 07 5 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 $48 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? 25 points Complete this question by entering your answers in the tabs below. Required: Required 2 Nint Required 3 form Portsmouth is considering paying its upholstery laborers houtly compensation, in addition to the usual sanes, to work overtime. Assuming that this extra time would be used to produce sofas, ut 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 Maximum overline rate per hour Required 25 Check my work 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 $48 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 A small nearby upholstering company has offered to upholster future for Portmouth at price of 18 per hour. The management of Portsmouth is confident that this upholstering company's work high quality and their craftsmen can works 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 hires the nearby upholstering company to make love Seats Show Additional contribution margin per hour Required 33
