WILL RATE

Portsmouth Company mokes upholstered furniture. its only varable cost is direct materiais, The demand for the companys products far exceeds its manufocturing capacify. The botileneck (or constrainh in the production process is upholstery labor-hotirs. information. concerning three of Portsmouthy upholstered chalrs appears beiow Required: 1. Portsmouth is considering paying its upholstery laborers houtly compensotion, in oddition to their usual salaries, to work overtime. Assuming that this extra time would be used to produce sofos, up to how much of an overtime premium per hour should the compary. be willing to poy to keep the upholstery shop open after norrnal working hours? 2. A smol neatby uphoktering company has offered to upholster fumiture for Poitsmouth at o price of $5t per hour. The nanagement of Portsmouth is confident that this upholstering company's work is high quality and thei craftsmen can work as quickly as Portsmouth s own craftsmen on the simpler upholgtering jobs such as the tove Seat. How makch addalonal contribution margin per hour can Portsmouth earn if it hires the nearby uphokstening compony to moke Love Seats? 3 5hosed Portsmouth hue the neorby uphotstering compony? Complete this question by emterind your answers in the tabs below. Portsmauth is conaidering paying ics uphoistery laboress bourly compensation, in addtion to their usuat sslaries, to woek. overbine. Assuming that this extra time would bo used to produce sofas, up to how much of an overtime premium per hour. should the company be willing to pay to kecp the upholstery shop cpen after normal workang hours? Portsmouth Compary makes uphoistered furniture. its only voriable 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 uphoistery labor-hours information concerning three of Portsmouth's uphokstered chairs appears below. Required: 1. Portsmouth is considening paying its upholstery laborers houly compensation, in addition 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 premium per hour should the compary be willing to pay to keep the upholstery shop open after normal working hours? 2. A small nearby upholstering company has offered to upholster furnture for Portsmouth at a price of $51 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality and their craftsmen can work as quickiy as Portsmothth' 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 compeny to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? Complete this question by entering your answers in the tabs beiow. A small nearby upholstering company has offered to upholster furniture for Portsmouth at a foxed charge of 551 per hour. The management of Portsmouth is confident that this upholstering company's work is high quality ond 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