Company makes upholstered furniture is only variable cost is direct materials

Company makes upholstered furniture is only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The bottlerleck for constraints in the production process is upholstery labor hours Information concerning three of Portsmouth's upholstered chairs appears below. 1,15 of 1.90 1.300 10 hours Selling price per unit Variable cost per unit Lighlstery labor-hours per unit 1,400 9 hours S 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 sofos 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 smalt nearby upholstering company has offered to upholsteruniture for Portsmouth at a price of $57 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 murun per hoor con Portsmouth eam fit 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. Het Red Frequired authcnderin paying its holstery labocor hourly compensation into to their usuaris 16