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.
Contribution margin. In cost-volume-profit analysis, a form of management accounting, contribution marginâthe marginal profit per unit saleâis a useful quantity in carrying out various calculations, and can be used as a measure of operating leverage. Typically, low contribution margins are prevalent in the labor-intensive tertiary sector while high contribution margins are prevalent in the capital-intensive industrial sector.