Please answer 1 & 2.

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.

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. Assume that each workstation has one worker. The average American factory worker makes $15.00[3] per hour, including fringes, benefits and payroll taxes total hourly cost is $20.10 per hour. In China the average factory workers salary is 8,000 Yuan per month[4], 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[5]. Depending upon the size of the sofa, there are anywhere from 8-to-18 sofas per shipping container.

Standard Container Shipping Cost from China to USA
Charge	Low	High
Factory to port	$ 50	$ 480
Clearance	100	300
Shipping Shenzhen, China to LA, CA. USA	2,230	2,460
Insurance (0.2%)	8	18
Port charges	100	450
Customs bond	100	200
Local Charges	100	450

From the information above, determine

(1) the labor cost to build a sofa in each USA and China?

(2) the labor cost difference between building a sofa in the USA and China?