Cellular Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2024 flexible budget shows output levels of 5,500, 7,000, and 9,000 units. The static budget was based on expected sales of 7,000 units. The company sold 9,000 units during July. Its flexible budget and actual operating income was as follows: (Click the icon to view the flexible budget.) (Click the icon to view the income statement.) Read the requirements - X - Data table - Requirement 1. Prepare a flexible budget performance report for July (Enter a "0" for any zero balances. For any 50 variances, leave the favorable (F)/Unfavorable (U) input blank.) Celle - X - X Flexible Bud Data table Requirements For the Mo 1 Cellular Technologies 1. Prepare a flexible budget performance report for July Income Statement 2. What was the effect on Cellular's operating income of selling 2,000 units more Budget than the static budget level of sales? For the Month Ended July 31, 2024 Amounts Actual 3. What is Cellular's static budget variance for operating income? Sales Revenue $ 223,000 4. Explain why the flexible budget performance report provides more useful Per Unit Results 122.200 information to Cellular's managers than the simple static budget variance. Units Variable Expenses What insights can Cellular's managers draw from this performance report? 100,800 Contribution Margin Sales Revenue 59,000 Variable Expenses Fixed Expenses $ 41,800 Contribution Margin Operating Income Print Done Fixed Expenses Cellular Technologies Flexible Budget For the Month Ended July 31, 2024 Budget Amount per Unit Units 5,500 7,000 9,000 Sales Revenue $ 24 $ 132,000 $ 168,000 $ 216,000 Variable Expenses 13 71,500 91,000 117,000 Contribution Margin 60,500 77,000 99,000 Fixed Expenses 58,000 58,000 58,000 $ 2,500 $ 19,000 $ 41,000 Operating Income Operating Income Print Done Print Done