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.
An important term used with break-even point or break-even analysis is contribution margin. In equation format it is defined as follows: The contribution margin for one unit of product or one unit of service is defined as: At Oil Change Co. the contribution margin per car (or per oil change) is computed as follows: