answersLogoWhite

0


Best Answer

The contribution margin ratio is the percentage of a company's contribution margin to its net sales

User Avatar

Wiki User

10y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: How is CM ratio useful in planning business operations?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

Titanium is useful because it has a high ratio?

Titanium is useful because it has a high strength to weight ratio.


How is information system useful?

The evaluation of financial data may be performed through ratio analysis, trend evaluation, and financial planning modeling. Financial planning and forecasting are facilitated if used in conjunction with a Decision Support System (DSS).


What are the advantage and disadvantages business ratio?

ratio analysis


What is an efficiency ratio?

The efficiency ratio for a machine usually refers to the ratio of the useful energy available from a machine and the energy put into it.


Is 1.26 current ratio good?

It depends on the nature of business as well as the capital intensity of the business if business is capital intensive the high current ratio required otherwise it is not required to maintain high current ratio


What is a useful measure of solvency?

Debt to total assets ratio


What is gearing ratio and its importance?

gearing is where a company analyses its financial expenditure on its operations


What is the Earning assets to total assets ratio?

Its the ratio between the assets which generate income for the business to total assets owned by the business.If the ratio is higher, that shows business is in good position.


What the measure of the ratio of useful work output to work input?

Efficiency


What is the importance of p v ratio?

It is most useful for calculating the profitability of he business whenever required. The expression defines it as contribution/sales x 100. It is also important for calculating Break even point.


What is debit to equity ratio?

Debt to equity ratio is a measurement criteria to measure how much debt is used in business as compare to owner's capital to finance the business.


What is current liabilities to total assets ratio?

Current liabilities to total assets ratio is the comparison between total assets in business with current liabilities in business.