Wexpro, Inc, produces several products from processing 1 ton of clypton, a rare mineral. Material and processing costs total 571000 perton, one fourth of which is allocated to product X15. Sex thousand five Hundred units of product X15 are produced from each ton of clypton. The units can either be sold at the split-off point for 517 each, or processed further at a total cost of $8,800 and then sold for $22 each Required: 1. What is the financial advantage (disadvantage of further processing product X15? 2 Should product XiS be processed further or sold at the split off point? 1 2 Product X15 should be 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 constraints in the production process is upholstery labor hours Information concerning three of Portsmouth's upholstered chairs appears below Selling price per unit Variable cost per unit Upholstery labor hours per unit Recliner 133265 6005 hours Sofa 1,650 1.150 10 hours Love Seat 1,330 1. hours Required: 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 premium per hour should the company 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 $47 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 hures 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 Required Portsmouth is considering paying its upholstery laborers hourly compensation. In addition to their usual sales to work overtime. Assuming that the extra time would be used to produce tofas, 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? Required 2 > 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 for constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's upholstered chairs appears below Selling price per unit Variable cost per unit Upholstery labor-hours per unit Recliner Sofa Love Seat 1,328 $ 1,6503 1,330 300 $ 1,150 $ 1,050 8 hours 10 hours 4 hours Required: 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 premium per hour should the company 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 $47 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 eam 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 1 Required 2 Required 3 A small nearby upholstering company has offered to upholster furniture for Portsmouth at a fixed charge of $42 per hour The management of Portumouth 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 additionat contribution margin per hour can Portsmouth eam ir it hires the nearby upholsteding company to make Loveseats how less A contribution margin per hour
