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Chester Corp. ended the year carrying $21,490,000 worth of inventory. Had they sold their entire inventory at their current prices, how many more dollars of contribution margin would it have brought to Chester Corp.

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Parrain

Answer: $21,490,000

Explanation:

Contribution Margin is simply the Sales less the value of variable costs.

If the inventory had been sold in its entirety, it would have added its value to the sales which means that sales would have increased by the value of the inventory which is $21,490,000.

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