1. Prepare a flexible budget performance report for July. 2. What was the effect on NetTech's operating income of selling 2,000 units more than the static budget level of sales? 3. What is NetTech's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to NetTech's managers than the simple static budget variance. What insights can NetTech's managers draw from this performance report? NetTech Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 294,500 Variable Expenses 167,700 Contribution Margin 126,800 Fixed Expenses 52,000 74,800 Operating Income NetTech Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 9,000 207,000 $ 10,500 241,500 $ 12,500 287,500 Sales Revenue $ 23 $ 117,000 136,500 162,500 Variable Expenses Contribution Margin 90,000 51,000 105,000 51,000 Fixed Expenses 125,000 51,000 74,000 39,000 $ 54,000 $ Operating Income 1. Prepare a flexible budget performance report for July. 2. What was the effect on NetTech's operating income of selling 2,000 units more than the static budget level of sales? 3. What is NetTech's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to NetTech's managers than the simple static budget variance. What insights can NetTech's managers draw from this performance report? NetTech Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 294,500 Variable Expenses 167,700 Contribution Margin 126,800 Fixed Expenses 52,000 74,800 Operating Income NetTech Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 9,000 207,000 $ 10,500 241,500 $ 12,500 287,500 Sales Revenue $ 23 $ 117,000 136,500 162,500 Variable Expenses Contribution Margin 90,000 51,000 105,000 51,000 Fixed Expenses 125,000 51,000 74,000 39,000 $ 54,000 $ Operating Income