Portsmouth Company makes upholstered furniture. Its only varlable cost is direct materlals. The demand for the company's products far exceeds its manufacturing capacity. The bottleneck (or constrlant) In the production process is upholstery labor-hours. Information concerning three of Portsmouth's upholstered chalrs appears below SofaLove Seat Selling price per unit Variable cost per unit Upholstery labor-hours per unit $1,298 1,548$1,308 850 8se 1,188 $ hours 11 hours6 hours Required 1. Portsmouth is consldering paylng 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 upholstery shop open after normal worklng hours? 2 A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $36 per hour. The management of Portsmouth Is confident that thls upholstering company's work Is hlgh quality and thelr 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 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. Required Required 2 Required 3 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 upholstery shop open after normal working hours? A small nearby upholstering company has offered to upholster furniture for Portsmouth at a price of $36 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 if it hires the nearby upholstering company to make Love Seats? Show less ditional contribution margin per hour Should Portsmouth hire the nearby upholstering company? Yes No