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.
Cost-volume-profit analysis is used to determine the profit-maximizing level of output. The contribution margin per unit is equal to price minus short-run average variable cost. Breakeven output is equal to total fixed cost divided by the contribution margin per unit.ost-volume-profit analysis is used to determine the profit-maximizing level of output. The contribution margin per unit is equal to price minus short-run average variable cost. Breakeven output is equal to total fixed cost divided by the contribution margin per unit.