The contribution margin of a department is the difference between:

Name: The contribution margin of a department is the difference between:
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Question

Quizplus · Accepted Answer

The contribution margin represents the amount of money available to cover a company's fixed costs and generate a profit. It is calculated by subtracting a department's direct expenses (such as the cost of goods sold) from its gross profit on sales. Therefore, choice B is the most accurate description of the contribution margin.

The Contribution Margin of a Department Is the Difference Between