Question: Lost Apo Sorte Ortonaucion.com CRI HW Help Set San Checy 4 Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand

 Lost Apo Sorte Ortonaucion.com CRI HW Help Set San Checy 4

Lost Apo Sorte Ortonaucion.com CRI HW Help Set San Checy 4 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: 4.16 points 1,500 Selling price per unit Ve cost per unit Upholstery laber-hours per unit 1,4083 1.6405 250 1.160 12 hours S hours ROGIR Hint Required: L. 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 $41 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? PM 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? Max overtime primum per hour Required 2 > ME GE

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