Exercise 6.6 (Algo) Managing a Constrained Resource [LO6.6] Portsmouth Company makes upholstered fumiture: Its only variable cost is direct materials. The demund for the company's products far exceeds its manufacturing capacity. The bottieneck (or constratht) in the production process is upholstery labor-hours Information conceming three of Pontsmouth's products appears below Required: 1. Portsmouth is considenng poying its upholstery latborers hourly compengation, in addition to their usual salaries, to work avertime 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 Wiling to pay to keep the upholstery shop open aftet normal working hours? 2. A small nearby uphistering company bas offered to uphoster furniture for Portsmouth of a price of 545 per hout The management of Portsmionth is confident that this upholstering company's works higin quality and their craftemen can work as quickly as Portsmouths own crafismen on the simpler uphoisteing jobs such as the Love Seat How much additional conthbution margin per hour can Portsmouth eam if it hires the fearby uphoistering compary to make Love Seats? 3: Should Portsmouth hire the nearby uphoistering company