There are two companies manufacturing drones. Company A manufactures mass market drones, while company B manufactures...

  

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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) (b) 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) 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: Cost of goods sold Inventory Raw Material Work-in-process Finished goods Company A $1,870,000 $1,080,000 $120,000 $50,000 Company B $150,000 $96,000 $12,000 $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 company's inventory performance is better than the other's? Why or why not? (8 marks) 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) (b) 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) 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: Cost of goods sold Inventory Raw Material Work-in-process Finished goods Company A $1,870,000 $1,080,000 $120,000 $50,000 Company B $150,000 $96,000 $12,000 $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 company's inventory performance is better than the other's? Why or why not? (8 marks)

Answer rating: 100% (QA)

a The output of the production processes of Company A ... View the full answer