Sales volume variance determines profit difference Steps:

• Budgeted sales volume = 2000 units; actual = 2000 × 0.9 = 1800 units; shortfall = 200 units.
• Contribution margin per unit = $25 selling price -$10 variable cost = $15.
• Lost contribution from shortfall = 200 units × $15 =$3000.
• Fixed costs remain $10,000 in both budgeted and actual, so profit differs by exactly the lost contribution.

Why B is correct:

• Sales volume variance formula: (budgeted volume - actual volume) × contribution margin per unit = profit shortfall of $3000.

Why the others are wrong:

• A: Calculates shortfall × fixed costs per unit ($10,000 / 2000 =$5, but doubled to $10 erroneously).
• C: Possibly actual revenue ($45,000) minus some misapplied total costs.
• D: Shortfall × inflated margin (e.g., $25 +$10), ignoring true contribution.

Final answer: B