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Portsmouth Company makes uphoistered furniture. Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck

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Portsmouth Company makes uphoistered 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. Intormation concerning three of Portsmouth's products appears below: Required: 1. Portsmouth is considering paying its uphoistery laborers hourly compensation, in addition to their usual salaries, to work overtime. Assuming that this extra ume would be used to produce sofas, up to how much of an overtime rate per hour shouid the company be willing to pay to keep the uphotstery shop open after normal working hours? 2A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $39 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 eam 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. Portsmouth is considerino 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? Required: 1. Portsmouth is considering paying its upholstery laborers hourly com Assuming that this extra time would be used to produce sofas, up to willing to pay to keep the upholstery shop open after normal working 2. A small nearby upholstering company has offered to upholster furn of Portsmouth is confident that this upholstering company's work is hi Portsmouth's own craftsmen on the simpler upholstering Jobs such as hour can Portsmouth earn if it hires the nearby upholstering company 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs be Portsmouth is conshering paying its upholstery laborers hourly compen overtime. Assuming that this extra time would be used to produce sofas the company be willing to pay to keep the upholstery shop open after n Complete this question by entering your answers in the tabs below. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $39 per hour. The management of Portsmouth is confident that this uphoistering 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? far exceeds its manufacturing capacity. The bottleneck (or constral concerning three of Portsmouth's products appears below: Required: 1. Portsmouth is considering paying its uphoistery laborers hourly Assuming that this extra time would be used to produce sofas, up willing to pay to keep the upholstery shop open after normal workI 2 A small nearby upholstering company has offered to uphoister f of Portsmouth is confident that this uphoistering company's work is Portsmouth's own craftsmen on the simpler upholstering Jobs such hour can Portsmouth eam if it hires the nearby uphoistering compi 3. Should Portsmouth hire the nearby uphoistering company? Complete this question by entering your answers in the tabs Should Portsmouth hire the nearby upholstering company

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