Lagos Beverages Plc sells a single product at ₦2,500 per unit. Variable cost is ₦1,500 per unit and budgeted fixed costs total ₦12,000,000 per annum. The company desires a budgeted profit of ₦8,000,000. How many units must be budgeted for sale to achieve this target profit?

Contribution per unit = ₦2,500 – ₦1,500 = ₦1,000. Required contribution = Fixed costs + Target profit = ₦12,000,000 + ₦8,000,000 = ₦20,000,000. Required sales volume = ₦20,000,000 ÷ ₦1,000 = 20,000 units. Option A uses only fixed costs divided by contribution, ignoring target profit. Option C incorrectly divides total fixed costs by contribution margin ratio rather than per-unit contribution.