please answer 3, 4, 5, 6, 7, 8

Sofa-Build or Buy Nearly $40 billion of sofas and sofa sets are sold each year in the United States 1. Making a sofa is a complex multi-step process. Making one by hand can take between 200-to-300 hours; however, a modern factory can make a sofa every 10-to-15 minutes. These reduced times are the result of automation and optimized factory layout and line balancing. Below are basic diagrams of how sofas are constructed. Figure-1: Frame and Foundation According to Koruca, Koker, Chehbi-Gamoura and Ulsik (2018)2 in a modern well-run factory dedicated to manufacturing sofas, there are 32 workstations with an average cycle (Takt) time of 601.3 seconds 3. Assume that each workstation has one worker. The average American factory worker makes $15.004 per hour, adding fringes, benefits and payroll taxes, the total hourly cost is $20.10 per hour. In China the average factory workers salary is 8,000 Yuan per month's , which comes to $1,200 per month, or an hourly rate of $6.92. Including 20% for employers' social security contribution (health insurance, maternity insurance, work related injury insurance and unemployment insurance) the hourly cost of a Chinese factory worker is $8.31 per hour. The average cost to ship a container from China to the Port of Los Angles is given in the table below 6. Depending upon the size of the sofa, there are anywhere from 8-to-18 sofas per shipping container. A typical US furniture manufacturer sells 11,560 sofas annually (or approximately 32 sofas per day). It spends $175 on raw and processed materials per sofa and sells sofas to furniture stores at an average wholesale price of $650, whether the sofas are made in the USA or China. This company is considering outsourcing the sofas to a Chinese manufacturer, If the company decides to outsource, it will purchase the sofas at an average price of $289.63 FOB. Approximately 3% of the sofas manufactured in the USA are damaged in transit while, 8% of sofas made in China are damaged in transit. 98% of customers backorder damaged sofas. The rehandiling fees for damaged sofas are $250 each. The company would be able to sell its production equipment for $1.2 million and get rid of its factory for $1.6 million; as well as the overhead and expenses associate with the factory. The order cycle time for producing in the USA Is 4 days, with a standard deviation of 1 day. The order cycle time for producing in China is 14 days with a standard deviation of 4 days. Outsourcing eliminates direct labor cost. Outsourcing wirl also add $27,500 of other income as the result of investing some of the money from the sale of plant equipment and real estate; however, the bulk of the funds ($2,193,000) would go to stock (equity) buy-back as well as, decreasing indirect labor and other operating cost by $1,805,000 and $748,500 respectfully. However, outsourcing increases cost of goods; along with increasing transportation cost (based upon the averoge transportation cost). Once the sofas reach the USA the warehousing cost should be the same. Concerning the balance. sheet, outsourcing increases current tiabilities by $871,000, decreases long term liabilities by $400,000, increases inventory - this is mainly due to cycle time more safety stock, increases cash by $550,000, and decreases fixed assets by $2,800,000. The interest rate is 5%, the tax rate is 33%, and the inventory carrying rate is 25%. sofas per shipping container, calculate the average cost of shipping sofa. 4 , (3) using an average of 12 are equal, determine if the lower labor costs outweigh the shipping cost. (4) Assuming all other cost inventory and safety stock for both options. (6) Construct an incorne statement and batance sheer for outsourcing to China, and (7) calculate all necessary operating and financial fatios to assess whe for the firm should keep manufacturing in the USA or outsouting and financial ratios? to assess whether assessment of risk and supply chain res ilience