Portsmouth Company makes upholstered 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. Information concerning three of Portsmouth's upholstered chairs appears below:

Cincy Jungle, a Cincinnati Bengal X Assignments: Crosslist Fall 2020 / x Connect X G Portsmouth Company makes up! X Course Hero * + X O A https://ezto.mheducation.com/ext/map/index.html?_con=con&external_browser=0&launchUrl=https%253A%252F%252FIms.mheducation.com%252F.. HW10 - Chapter 12 Saved Help Save & Exit Submit Check my work 2 Recliner Sofa Love Seat Selling price per unit 1, 344 Variable cost per unit $ 1, 785 $ 1, 200 750 1, 200 $ 900 Upholstery labor-hours per unit 9 hours 13 hours 4 hours 3 points Required: 1. Portsmouth is considering paying its upholstery laborers hourly compensation, in addition to their usual salaries, to work overtime. eBook Assuming that this extra time would be used to produce sofas, up to how much of an overtime premium per hour should the company Hint be willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $42 per hour. The management Ask 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 Print hour can Portsmouth earn if if it hires the nearby upholstering company to make Love Seats? References 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 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 premium per hour should the company be willing to pay to keep the upholstery shop open after normal working hours? Maximum overtime premium per hour Mc Graw Q4.png Open file . . . Show all X Type here to search W 2:50 PM 10/5/2020 730Required 1 Required 2 Required 3 A small nearby upholstering company has oFfered to upholster furniture for Portsmouth at a price of $42 per hour. The management of Portsmouth is condent that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's own claftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if if it hires the nearby upholsten'ng company to make Love Seats? Show less;