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.
As an example of contribution per unit, ABC International has generated $20,000 of revenues in the most recent accounting period from sales of its purple widget. There are $14,000 of variable costs associated with these revenues, which means that the overall contribution margin for the purple widget was $6,000.Since ABC sold 500 purple widgets, the contribution per unit was $12 (calculated as $6,000 contribution margin / 500 units sold).s an example of contribution per unit, ABC International has generated $20,000 of revenues in the most recent accounting period from sales of its purple widget. There are $14,000 of variable costs associated with these revenues, which means that the overall contribution margin for the purple widget was $6,000.