mework Company makes upholstered furniture. ts only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constriant) in the production process is upholstery labor-hours concerning three of Portsmouth's upholstered chairs appears below: Selling price per unit 1,410 2,065 $1,270 850 8 hours 13 hours 6 hours Variable cost per unit 850 1,350 $ Upholstery labor-hours per unit Required: 1. Portsmouth is considering paying its upholstery laborers additional compensation 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 openafter normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $52 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 Portsmouth is considering paying its upholstery laborers additional compensation to work time wo tn keen the unhnlcterv chon onen after overtime. Assuming that this extra ium per hour should the company be willing to pay uld be used to produce sofas, up to how much of an overtime premi Prex 4 of 5 Next>