Ibadan Breweries Plc is considering a proposal to reduce its selling price by 10% in order to increase sales volume. Currently, the company sells 50,000 units at ₦1,200 per unit with a P/V ratio of 40%. Fixed costs remain unchanged. By what minimum percentage must sales volume increase for the company to maintain its current total profit?

Current contribution per unit = 40% × ₦1,200 = ₦480; variable cost = ₦720. New price = ₦1,080; new contribution = ₦1,080 − ₦720 = ₦360. Current total contribution = 50,000 × ₦480 = ₦24,000,000. Required units at new price = ₦24,000,000 ÷ ₦360 = 66,667 units. Required volume increase = (66,667 − 50,000) ÷ 50,000 × 100 = 33.3%. Options A, B, and C underestimate the impact of the price reduction on per-unit contribution.