Portsmouth Company makes upholstered furniture. ins only varioble cost is direct materials. The demand for the company's products far excecds its manufacturing capacity The botteneck lor constebint in the production process is upholstery labor thours. Information concerning three of Portsmpuths produsts appears below: Aequired: 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 heur should the compary be Wiling to ply to keep the uphostery shop open atter normsi working hours? 2. A smail nearby upholstering company has offered to upholster fumiture 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 woek as quickly as Portimouth's own cratsmen on the simpler upholstering jobs such as the Love Seat. How much additional contritbution margin per hour can Portsmouth eam if it hires the nearby upholstering company to make Love Seats? 3. Should Portamouth hlte the nparby upholstering company? Complete this question by entering your answers in the tabs below. Portamouth is considering poying its upholatery laboren bouriy compensation, in addition to their usual salaries, to work overtime: Assuming that this exte time would be used to preduce solas, wp to hos much of an overtime rate per hour should the company be whing to bay to kewe the upholstery shoe open anter normal working hours? willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby uphoistering company has offered to upholster furniture for Portsmouth at a price or $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 Seat. How much additional contribution margin per hour can Portsmouth earn if it hires the nearby uphoistering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering compary? Complete this question by entering your answers in the tabs below. A smail nearby upholstering company has offered to uptiolster furniture for Portsmouth at a peice of $40 per hour: The management of Portsmouth is confident that this upholstering company's work is high quality and thelr craftsmen can work as quicky as fortsmouth's own craftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution morgin per hour can Partsmouth earn if it hires the neorby upholitering company to make tovo Seats? 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. Should Portsmouth hire the nearby upholstering company
