A socio-ecological system consists of 'a bio-geo-physical' unit and its associated social actors and institutions.
Contribution Margin. Contribution margin is a productâs price minus all associated variable costs, resulting in the incremental profit earned for each unit sold. The total contribution margin generated by an entity represents the total earnings available to pay for fixed expenses and to generate a profit. The contribution margin concept is useful for deciding whether to allow a lower price in special pricing situations.
Contribution margin per unit on this gadget equals $60 (100 â 40 = 60). Therefore, selling the gadget increases net income by $60. Increasing the sales price doesnât affect variable costs because the number of units manufactured, not the sales price, is what usually drives variable manufacturing costs.