<Tr> <Td> Income from Operations </Td> <Td> $132,000 </Td> </Tr> <P> Variable costs as a percentage of sales are equal to 100% minus the contribution margin ratio . Thus, in the above income statement, the variable costs are 60% (100% - 40%) of sales, or $648,000 ($1,080,000 X 60%). The total contribution margin $432,000, can also be computed directly by multiplying the sales by the contribution margin ratio ($1,080,000 X 40%). </P>

Explain the meaning and functions of management accounting