Cellular Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2024 flexible budget shows output levels of 8,000, 9,500, and 11,500 units. The static budget was based on expected sales of 9,500 units. The company sold 11,500 units during July. Its flexible budget and actual operating income was as follows: (Click the icon to view the flexible budget.) Read the requirements. (Click the icon to view the income statement.) Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income Flexible Budget Performance Report For the Month Ended July 31, 2024 1 2 3 5 (1)-(3) (3)-(5) Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget e Cellular Technologies Flexible Budget For the Month Ended July 31, 2024 Budget Amount per Unit Units 8,000 9,500 11,500 Sales Revenue $ 23 $ 184,000 $ 218,500 $ 264,500 Variable Expenses 13 104,000 123,500 149,500 Contribution Margin 80,000 95,000 115,000 Fixed Expenses 57,000 57,000 57,000 $ 23,000 $ 38,000 $ 58,000 Operating Income Data table Cellular Technologies Income Statement For the Month Ended July 31, 2024 Sales Revenue $ 271,500 154,600 Variable Expenses Contribution Margin Fixed Expenses 116,900 58,500 $ 58,400 Operating Income - Requirements 1. Prepare a flexible budget performance report for July. 2. What was the effect on Cellular's operating income of selling 2,000 units more than the static budget level of sales? 3. What is Cellular's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to Cellular's managers than the simple static budget variance. What insights can Cellular's managers draw from this performance report