3 Chapman Incorporated sells a single product, Zud, which has a budgeted selling price of $25 per unit and a budgeted va

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3
Chapman Incorporated sells a single product, Zud, which has a
budgeted selling price of $25 per unit and a budgeted variable
cost of $13 per unit. Budgeted fixed costs for the year amount to
$45,500. Actual sales volume for the year (48,000 units) fell
3,500 units short of budgeted sales volume. Actual fixed costs were
$46,500. With everything else held constant, what impact did the
shortfall in volume have on profitability for the
year? (Indicate whether the effect was favorable or
unfavorable in terms of its effect on operating
income.)