Portsmouth Company makes upholstered furniture. Its only vatiable 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 conceming three of Portsmouth's products appears below: Required: 1. Portsmouth is considering paying its upholstery laborers hoully compensation, in addithon to their usual salarles, to work overtime. Assuming that this extra time would be used to produce sofas, up to how much of an overtime rate per hour should the company be witling to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster fumbiture for Portsmouth at a price of $44 per houe The management of Potsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickly as Portsmouth's own caftsmen on the simpler upholstering jobs such as the Love Seat. How much additional contribution margin per hour can Portsmouth earn if it hires the neaby upholsteting conpany to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company