Exercise 11-6 (Algo) Managing a Constrained Resource [LO11-6] Porismouth Company makes upholstered furnilure. Its only varlable cost is direct materiais. The demand for the company's products far exceeds its manufacturing copacity. The botteneck (or constraint) in the production process is upholstery labor-hours information concerning three of Portsmouth's products appears below: 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 $35 per hour. The management of Portsmouth is confident that this upholsteting company's work is high quality and thelr 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 negiby upholstering company? Complete this question by entering your answers in the tabs below. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaties, to work overtine. Assuming that this extra time would be used to produce solas, up to how much of ar ovetime rate per hour should the company be willing to pay to keep the unholstery thop ogen after normal working hours