On a departmental income statement, sales less cost of goods sold and direct expenses equals:

Name: On a departmental income statement, sales less cost of goods sold and direct expenses equals:
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Departmental contribution margin is calculated by subtracting the cost of goods sold and direct expenses from sales. This figure shows the contribution of a department towards covering indirect expenses and generating profit, without yet accounting for those indirect expenses.

On a Departmental Income Statement, Sales Less Cost of Goods