Cellular Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 7,500,9,000, and 11,000 units. The static budget was based on expected sales of 9,000 units. The company sold 11,000 units during July. Its flexible budget and actual operating income was as follows: B (Click the icon to view the flexible budget.) (Click the icon to view the income statement.) Read the requirements Requirement 1. Prepare a flexible budget performance report for July. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F/Unfavorable (U) input blank.) Cellular Technologies Flexible Budget Performance Report Data table For the Month Ended July 31, 2018 1 2 3 4 5 Cellular Technologies (1)-(3) (3) - (5) Flexible Budget Budget Flexible Sales For the Month Ended July 31, 2018 Amounts Actual Budget Flexible Volume Static Budget Per Unit Results Variance Budget Variance Budget Amount per Unit Units Units 7,500 9,000 11,000 Sales Revenue Sales Revenue S 25 $ 187,500 $ 225,000 $275,000 Variable Expenses Variable Expenses 14 105 000 126,000 154,000 Contribution Margin Contribution Margin 82.500 99,000 121,000 Fixed Expenses Fixed Expenses 57.000 57,000 57,000 Operating Income $ Operating Income 25.500 $ 42,000 $ 64,000 - X Data table Print Done - Requirements Cellular Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 282 000 159 200 Variable Expenses Contribution Margin 122 800 58.000 Fixed Expenses $ 64 800 Operating Income 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