Kano Cement Company Limited sells its product at ₦5,000 per bag. Variable production cost is ₦2,800 per bag, variable selling cost is ₦200 per bag, and total annual fixed costs are ₦22,000,000. The company is subject to Companies Income Tax (CITA) at 30%. What is the number of units required to achieve an after-tax profit of ₦7,000,000?

Variable cost per unit = ₦2,800 + ₦200 = ₦3,000. Contribution per unit = ₦5,000 − ₦3,000 = ₦2,000. Required pre-tax profit = ₦7,000,000 ÷ (1 − 0.30) = ₦10,000,000. Required units = (Fixed costs + Required pre-tax profit) ÷ Contribution = (₦22,000,000 + ₦10,000,000) ÷ ₦2,000 = ₦32,000,000 ÷ ₦2,000 = 16,000 bags. The CITA adjustment grosses up the after-tax target before applying the CVP formula.