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.
Calculate the contribution margin per unit by subtracting the variable cost per unit from the sales price per unit. For example, if a small company's product sells for $60 per unit with variable costs per unit of $20, the contribution margin per unit would be $40.lug the TFC and contribution margin figures into the formula: BEP (in units) = TFC/contribution margin per unit. In this example, the small company's BEP would equal $40,000/$40, or 1,000 units. Determine the break-even point from the calculation.