The answer is $ 43478000 more contribution margin could be brought to Andrews Corp
When inventories are sold, there is an increase is recorded in sales and cost of goods sold also. Thus the value of the inventory at the date of sale will be the cost of goods sold.
We assume that the revenue will be twice the value of the cost of inventory and the cost of goods sold is only a variable cost of Andrews corp.
Computation of the increase in contribution margin :
Contribution margin = Sales - Variable cost of goods sold
Contribution margin = ($434780000) 2 - $43,478,000 = $43,478,000
An inventory is any item which is owned by the company. It is expected to be sold in the normal business transaction within a year.
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