Portsmouth Company makes upholstered fumiture. Its only vasiable cost is direct materials. The demand tor the company/s products far excecds its manufacturing capacity. The bottieneck (or constraints in the production process is upholstery isbor-hours. Information concerning three of Portsmouth's products appears below: Required: 1. Portsmouth is consideriag poying its upholstery laborers hourfy compensation, in addition to their usual salaries, to work overtime. Assuming this extro time would be used to produce solas, up to how much of an overtime rate per hour should the company be willing to psy to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering compary has offered to upholster fumiture for Portsmouth at a price or $40 per hout. The management of Portsmouth is confident this upholstering company's work is high qualify, and its 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 thires the nearty upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby vohalstering company? Complete this question by entering your answers in the tabs below. Portsmouth is considering paying its upholstery laborers hourly compensation, in asdaion to their usual saluries, to work overtime. Assuming this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company ber willing to pay to keep the ueholstery shop open after nocmal working hours? Portsmouth Company makes upholstered fumiture. Its only vasiable cost is direct materials. The demand tor the company/s products far excecds its manufacturing capacity. The bottieneck (or constraints in the production process is upholstery isbor-hours. Information concerning three of Portsmouth's products appears below: Required: 1. Portsmouth is consideriag poying its upholstery laborers hourfy compensation, in addition to their usual salaries, to work overtime. Assuming this extro time would be used to produce solas, up to how much of an overtime rate per hour should the company be willing to psy to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering compary has offered to upholster fumiture for Portsmouth at a price or $40 per hout. The management of Portsmouth is confident this upholstering company's work is high qualify, and its 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 thires the nearty upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby vohalstering company? Complete this question by entering your answers in the tabs below. Portsmouth is considering paying its upholstery laborers hourly compensation, in asdaion to their usual saluries, to work overtime. Assuming this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company ber willing to pay to keep the ueholstery shop open after nocmal working hours
