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.
The denominator of this equation is the contribution margin. Imagine a company where fixed costs are $60,000, the price of the product is $2.00 per unit and variable costs are 80 cents per unit. Here is an example: Breakeven point = $60,000/$2.00 - $0.80 = 50,000 units.The contribution margin in this case is $1.20 per unit.ontribution Margin per unit of sales = Sales Revenue per Unit-Variable Expenses per Unit. Contribution Margin-Fixed Costs = Net Operating Profit or Loss. The break-even formula calculates the point at which a company's sales are zero-there is no profit or loss: