Review of Chapters 2 and 3. For each of the following independent cases, find the unknowns designated by the capital letters.

Case 1 Case 2 Direct materials used $H $48,000 Direct manufacturing labour 36,000 18,000 Variable marketing, distribution, customer service, and administrative costs K T Fixed manufacturing overhead I 24,000 Fixed marketing, distribution, customer service, and administrative costs

’ J 12,000 Gross margin 30,000 24,000 Finished goods inventory,January 1, 2007 0 6,000 Finished goods inventory, December 31, 2007 0 6,000 Contribution margin (dollars) 36,000 V Revenues 120,000 120,000 Direct materials inventory,January 1, 2007 14,400 24,000 Direct materials inventory, December 31, 2007 6,000 w Variable manufacturing overhead 6,000 X Work in process,January 1, 2007 0 10,800 Work in process, December 31, 2007 0 10,800 Purchases of direct materials 18,000 60,000 Breakeven point (in dollars) 80,000 Y Cost of goods manufactured G U 106 CHAPTER 3 Operating income (loss) L (6,000)