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

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Accounting

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 products appears below:
\table[[Selling price per unit,Recliner,Sofa,Love Seat],[Variable cost per unit,$1,230,$1,810,$1,250
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