Lagos Bottlers Limited produces three products with the following annual data: Product X contributes ₦600,000, Product Y contributes ₦900,000, and Product Z contributes ₦500,000. Total fixed costs are ₦1,200,000. What is the overall Profit/Volume (P/V) ratio if total sales revenue is ₦10,000,000?

Total contribution = ₦600,000 + ₦900,000 + ₦500,000 = ₦2,000,000. P/V ratio = Total contribution ÷ Total sales revenue = ₦2,000,000 ÷ ₦10,000,000 = 20%. The P/V ratio measures the proportion of each naira of sales that contributes to fixed costs and profit. The other options arise from including or excluding fixed costs incorrectly.