Brief Exercise $14-17($Static$)$ Chapman Incorporated sells a single product... $[$LO $14-3]$

Chapman Incorporated sells a single product, Zud, which has a budgeted selling price of $$24$ per unit and a budgeted variable cost of $$12$ per unit. Budgeted fixed costs for the year amount to $$45,000.$ Actual sales volume for the year $(47,000$ units$)$ fell $3,000$ units short of budgeted sales volume. Actual fixed costs were $$46,000.$ With everything else held constant, what impact did the shortfall in volume have on profitability for the year?

Note: Indicate whether the effect was favorable or unfavorable in terms of its effect on operating income.