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.
Step 2. Calculate your contribution margin in dollars per unit. Once you know the selling price and direct costs of each product or service unit you sell, you can calculate your contribution margin in dollars per unit. This is the amount of money you get over and above your direct costs for each unit you sell.