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.
ABC can use the weighted average contribution margin to calculate how many units it must sell in order to break even. Thus, fixed costs of $200,000 divided by a contribution margin of $10 per unit results in a requirement of 20,000 in unit sales in order to break even.