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Portsmouth Company makes uphoistered furnture, Its only variable cost is direct materials. The demand for the company's products far exceeds its manufacturing capacity. The botlleneck (or constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's products appears below 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 solas, up to how much of an overtime rate per hour should the company be willing to pay to keep the upholstery shop open atter normal working hours? 2 A small nearby upholstering company has offered to upholster furriture lor Portsmouth at a price of $53 per hour. The management of Portsmouth is contident that the upholstenng 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 uphoistering company to make Love Seats? 3. Should Portsmouth hire the reafby upholstering company? Complete this question by entering your answers in the tobs below. Should Fortamouth hire the nearby upholstering company

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