Portsmouth Company makes upholstered far exceeds its manufacturing capacity. The bottleneck (or constriant in the production process is upholstery labor-hours. Informa concerning three of Portsmouth's upholstered chairs appears below furniture. Its only variable cost is direct materials. The demand for the company's products oints Selling price per unit Variable cost per unit Upholstery Labor-hours per unit 5 1,444 850 9hours3 hours 4 hours 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 Hirt 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $44 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? Should Portsmouth hire the nearby uphoistering company? Print Complete this question by entering your answers in the tabs bel A small nearby uphoistering company has offered to upholster furniture for Portsmouth at a fixed charge of $44 per hour. The as Portsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional quickly contribution margin per hour can Portsmouth earn if it hires the nearby uphoistering company to make Love Seats? Prey 1 of 5Next >