Portsmouth Company makes uphoistered furniture. Its only variable cost is direct materials. The demond for the company's products. far exceeds its monufacturing capacity. The bottlencek for constraint) in the production process is upholstery fabor hours, fifformation 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 ofter normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $40 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 Seot. How much additional contribution margin per hour can Portsmouth earn if it hires the nearby upholstering compary to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company