Profit22,000Flexible budget @3000 unitsProfit9,000New Flexible budget profit =9,000Volume variance =120,000-90,000=30,000 unfavorableFirst calculate selling price, material cost and labor cost per unit based on the budget.  Selling price = £120,000 ÷ 4,000 units = £30 per unit Material cost = £48,000 ÷ 4,000 units = £12 per unit Labor cost = £20,000 ÷ 4,000 units = £5 per unit Prepare flexible budget for 3,000 units ... See the full answer