# Portsmouth Company makes upholstered furniture. Its only variable cost is direct materials. The demand for the...

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 constraint) in the production process is upholstery labor-hours. Information concerning three of Portsmouth's upholstered chairs appears below: Recliner Sofa Love Seat Selling price per unit $1,086$ 1,700 $1,420 Variable cost per unit$ 750 $1,250$ 1,100 Upholstery labor-hours per unit 6 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 $39 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 if it hires the nearby upholstering company to make Love Seats? 3. Should Portsmouth hire the nearby upholstering company? ## Answers #### Similar Solved Questions 1 answer ##### Check Ans on 9 of 16 > A certain substance has a heat of vaporization of... Check Ans on 9 of 16 > A certain substance has a heat of vaporization of 31.72 kJ/mol. At what Kelvin temperature will the vapor pressure be 5.00 times higher than it was at 331 K? about us Careers Privacy policy terms of use hele contact us... 1 answer ##### Write each name of all connections types on each connection. GENERAL NOTES (U.N.O.) 1. W Shapes... Write each name of all connections types on each connection. GENERAL NOTES (U.N.O.) 1. W Shapes -ASTM A992 Steel Pipe -ASTM A53. Other Shapes-ASTM A36. 2. Structural Bolts -'4- ASTM A325 Structural Anchor Rods-ASTM F1554 grade 36 3. Drill or punch all bot holes as STD holes 4. Shop coat prim... 1 answer ##### When 780 g of benzene (Molar mass = 78 g/mol) reacts with 750 mL of concentrated... When 780 g of benzene (Molar mass = 78 g/mol) reacts with 750 mL of concentrated HNO3 (16 M) and 750 mL of H2SO4 (18 M), 1000 g of nitrobenzene (molar mass = 123 g/mol) and 250 g of an unknown compound with a high boiling point are obtained. c. Give the name of the most probable side product with th... 1 answer ##### 2) Raj owned the fee simple in a piece of lan known as Blackacre, which contained... 2) Raj owned the fee simple in a piece of lan known as Blackacre, which contained a small shopping mall that was included in the title of the property. Although he had no children of his own, he was especially fond of his nephew, Ludwig, and his niece, Elise. Raj wanted to ensure that they enjoyed t... 1 answer ##### Electrostatics problem 2. An infinitely long circular cylinder of radius a and dielectric constant E is... Electrostatics problem 2. An infinitely long circular cylinder of radius a and dielectric constant E is placed with its axis along the z-axis and is put in an electric field which would have been uniform in the absence of the cylinder, pointing along the x-axis (see figure). Find the total electric ... 1 answer ##### A compound with the molecular formula C6H15N exhibits a singlet at d 0.9 (1H), A triplet... A compound with the molecular formula C6H15N exhibits a singlet at d 0.9 (1H), A triplet at d 1.10 (3H), A singlet at d 1.15 (9H), & quartet at d 2.6 (2H) In its 1HNMR spectrum. It’s Ir spectrum shows one medium absorption band near 3400 cm^-1. What is the structure of this compound? NH ... 1 answer ##### I'm not sure what I'm doing wrong for the last question. Starting from rest, a subway... I'm not sure what I'm doing wrong for the last question. Starting from rest, a subway train accelerates to a speed of 20.0 m/s in tA20.6 seconds. The train travels at that speed for the next 21 seconds. Finally, the train decelerates steadily to a full stop over the next 10.3 seconds What is... 1 answer ##### Which of the following is the best description of the financial statement analysis framework? State the... Which of the following is the best description of the financial statement analysis framework? State the objective and context, gather data, process the data, analyze and interpret the data, report the conclusions or recommendations, update the analysis. Gather data, analyze and interpret... 1 answer #####$621.00 Giuseppis Pizza had orders for 5621.00 of pizzas. The prices were 519 for a large...
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##### Determine the maximum force P which can be applied before slipping occurs a point A. The...
Determine the maximum force P which can be applied before slipping occurs a point A. The relevant parameters are: m=6 kg, R = 0.12 m, 1 = .0486 kg.m, us = 0.2 and uk = 0.15. (40) R 30°...