a) Fixed Costs: £30,000; Variable Cost: £15 per unit.

b) The total revenue at the break-even point is £30,000. The total number of units sold at the break-even point is 2,000. Therefore, the profit margin percentage is calculated as: ((Total Revenue - Total Variable Costs) / Total Revenue) * 100 = ((£30,000 - (£15 x 2,000)) / £30,000) * 100 = ( £0 / £30,000) * 100 = 0%. This means that at the break-even point, the company is neither making a profit nor a loss.

c) Tech Solutions could reduce its break-even point by:

• Reducing fixed costs: This could involve renegotiating rent, reducing administrative expenses, or finding cheaper suppliers.
• Reducing variable costs: This could involve finding cheaper materials, improving production efficiency, or negotiating better prices with suppliers.
• Increasing the selling price: If demand is elastic, a small increase in price could lead to a significant increase in sales volume.

1. Calculate the initial break-even point in units:

Break-even point (units) = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

Break-even point (units) = £10,000 / (£25 - £15)

Break-even point (units) = £10,000 / £10

Break-even point (units) = 1000 units

2. Calculate the new break-even point in units:

New Break-even point (units) = New Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)

New Break-even point (units) = £8,000 / (£25 - £15)

New Break-even point (units) = £8,000 / £10

New Break-even point (units) = 800 units

3. Impact on profitability:

• Reducing fixed costs from £10,000 to £8,000 significantly improves the company's profitability.
• The break-even point decreases from 1000 units to 800 units. This means the company needs to sell fewer units to cover all its costs.
• At a sales level of 800 units, the company will start making a profit, whereas previously it would only break even.
• This change makes the business more resilient to fluctuations in sales volume.

a) The break-even point in units is calculated as: Fixed Costs / (Selling Price per Unit - Variable Cost per Unit). Therefore, £50,000 / (£12 - £8) = 5,000 units.

b) If the selling price increases to £15, the contribution per unit increases to £7 (£15 - £8). This means the break-even point would decrease to 50,000 / 7 = approximately 7,143 units. This would lead to higher profits for ABC Ltd. at any sales level above the new break-even point.

c) Besides the break-even point, ABC Ltd. should consider the following:

• Market demand: Is there sufficient demand for the new product at the projected price?
• Competition: What are the prices and features of competing products?
• Marketing costs: What will it cost to promote and sell the new product?
• Production capacity: Can ABC Ltd. produce enough of the new product to meet demand?
• Potential risks: Are there any potential risks associated with launching the new product (e.g., technological changes, changes in consumer preferences)?