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.
1. Calculate the contribution margin of one unit of each product by deducting the variable cost of one unit from its selling price. For example, if a unit of product A sells for $10 and it has variable costs of $4, its contribution margin per unit is $6. 2. Calculate the percentage of total sales mix that each product accounts for.