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.
Determine the unit revenue (price) of the product. The first variable you need to find for the contribution margin equation is its unit revenue â in other words, the price it's sold for. The confusing term unit revenue is used in economics because the product's price is equal to the revenue generated by the sale of a single product (or one unit).