There are two companies manufacturing drones. Company A manufactures mass market drones, while company B manufactures customised drones according to customers requirements. In 2020, company A produces 3,200 drones, 3% of which were found to be defective and cannot pass the quality check. Company A employs 5 workers working an average of 8 hours a day in the drone production, and they worked 200 working days in 2020. In contrast, company B produces 900 drones, 10% of which were found to be defective and cannot pass the quality check. Company B employs 3 workers working an average of 6 hours a day in the drone production, and they worked 170 days in 2020.

(a) If the drone manufacturing is seen as a process, what is considered as the output of the production processes of companies A and B and why? (3 marks)

(b) Measure the single-factor manpower productivity for the two companies. (6 marks)

(c) Is it reasonable to compare the manpower productivity of the two companies and reach a conclusion that one company has a higher productivity than the other? Why or why not? If not, what information can be added to make a reasonable comparison? (8 marks)

(d) You are provided the following information: Company A Company B Cost of goods sold $1,870,000 $1,080,000 Inventory Raw Material $120,000 $96,000 Work-in-process $50,000 $12,000 Finished goods $150,000 $20,000 Use the information provided in the above table and calculate the inventory turnovers of companies A and B separately. Is it reasonable to compare the inventory turnovers and reach a conclusion that one companys inventory performance is better than the others? Why or why not? (8 marks)