Problem 1.1 Gross profit: [8 Marks] This year, merchandise is sold for $550,000 cash, $1,200,000 on account, and $75,000 from a licensing agreement unrelated to merchandise sales. The cost of the merchandise sold is $1,150,000. What is the amount of the gross profit? Delta Electronics purchases 8 drones for $12 each and sells them to customers for $20 each. They also spent $15 on packaging. What is Delta Electronics' total gross profit? Problem 1.2 Case Study: Case Study: Improving Employee Retention in a Tech Startup [15 Marks] A fast-growing tech startup was experiencing high employee turnover, particularly among its software engineers. Despite offering competitive salaries and benefits, many employees left within their first year. Exit interviews revealed that the primary reasons for leaving were burnout. lack of growth opportunities, and inadequate work-life balance. The startup's CEO, Mike, realized that the company's demanding work culture and rapid growth were putting immense pressure on employees. As the company expanded, the lack of clear career paths and mentorship left many employees feeling disconnected and undervalued. Mike and the HR team decided to implement a strategic plan to address these concerns and improve employee retention. First, they introduced flexible working hours and remote work options to help employees maintain a healthier work-life balance. This approach allowed employees to manage their workloads in a way that suited their personal schedules. Next, the company rolled out a formal mentorship program, pairing junior engineers with senior team members to provide guidance, career advice, and support. Additionally, the startup began offering professional development opportunities, such as attending industry conferences and participating in training programs, to help employees build skills and advance their careers. Lastly, the HR team implemented a more structured performance review process to ensure employees received regular feedback and recognition for their contributions. The results were immediate and positive. Employee turnover dropped significantly within six months, as employees felt more supported and valued. The mentorship program helped foster a sense of community within the company, while the flexible work arrangements improved morale and reduced burnout. Employees appreciated the professional development opportunities, which gave them a clearer sense of career progression. By focusing on work-life balance, growth opportunities, and mentorship, the startup successfully created a more sustainable and engaging work environment for its team. Questions: What were the main factors contributing to high employee turnover in the startup, and how were these challenges addressed? How did the introduction of mentorship and flexible work options impact the company's ability to retain employees?