Problem 1.1 [8 marks] In the current year, merchandise is sold for $600,000 cash and $1,250,000 on account. Additionally, $80,000 is received for a rent payment. The cost of the merchandise sold is $1,180,000. What is the amount of the gross profit? Shields Corporation purchases 5 flashlights for $5 each and sells them to customers for sg each. What is Shield's total gross profit ? Problem 1.2 [15 marks] Case Study: Enhancing Product Development Efficiency in a Manufacturing Company A mid-sized manufacturing company, known for its high-quality consumer electronics, faced significant delays in its product development cycle. Despite having skilled engineers and designers, the time to market for new products was consistently longer than expected, resulting in missed opportunities and reduced competitiveness. The company's CEO, David, recognized that the primary issues were inefficiencies in collaboration between the design and engineering teams, frequent design revisions, and a lack of clear project timelines. Additionally, the teams worked in silos, leading to communication gaps and duplicated efforts. David assembled a task force to address these challenges. The first step was to implement Agile project management practices, specifically designed to improve collaboration and speed up development. Teams began working in cross-functional groups, where engineers, designers, and marketers collaborated from the start of the project. This change reduced the number of design revisions, as potential engineering and marketing issues were identified early. Second, the company introduced daily stand-up meetings, where teams could quickly discuss progress, identify roadblocks, and adjust project timelines as needed. To further improve communication, David encouraged the use of collaborative digital tools like Trello and Slack, ensuring that all team members had real- time access to project updates and tasks. In addition to these operational changes, the company also streamlined its approval processes, reducing the number of sign-offs required to move a product from the design phase to the manufacturing stage. Finally, David established clear project timelines and deadlines, holding teams accountable for meeting milestones. These changes resulted in faster product development cycles, with fewer delays and a more cohesive workflow. Questions: What were the primary inefficiencies in the product development process, and how did the company address these issues? How did the introduction of Agile practices and collaborative tools improve communication and product development efficiency?