Data Table 0 Data Table England Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount bble England Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue s 257,000 Variable Expenses' 167,500 Contribution Margin 89,500 Fixed Expenses 55,500 $ 34,000 Operating Income per Unit 12,500 Units Sales Revenue $ 20 $ 9,000 180,000 $ 117.000 10,500 210,000 $ 136,500 250,000 162,500 13 Variable Expenses Contribution Margin Print 87,500 54,000 Done 63,000 54,000 9,000 $ Fixed Expenses 73,500 54,000 19,500 $ $ 33,500 Operating Income Static Budget Print Done i Requirements 1. Prepare a flexible budget performance report for July. 2. What was the effect on England's operating income of selling 2,000 units more than the static budget level of sales? 3. What is England's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to England's managers than the simple static budget variance. What insights can England's managers draw from this performance report? Print Done England Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 9,000, 10,500, and 12,500 units. The static budget was based on expected sales of 10,500 units. The company sold 12,500 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 Requirement 1. Prepare a flexible budget performance report for July (Enter a 'O' for any zero balances. For any 50 variances, leave the Favorable (FyUnfavorable (U) input blank 5 England Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 2 3 (1)-(3) Flexible Actual Budget Flexible Results Variance Budget Budget Amounts Per Unit (3) - (5) Sales Volume Variance Static Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income Requirement 2. What was the effect on England's operating income of selling 2,000 units more than the static budget level of sales? Selling 2,000 units more than the static budget level of sales England's operating income by $ Requirement 3. What is England's static budget variance for operating income? England's static budget variance is $ meaning that its operating income is than expected per the static budget Requirement 4. Explain why the flexible budget performance report provides more useful information to England's managers than the simple static budget variance. What insights can England's managers draw from this performance report? Choose two reasons why the flexible budget performance report provides England's managers with more information than the simple static budget variance These variances suggest that the marketing department did a job. They sold units than expected and sold them at a price than expected Requirement 4. Explain why the flexible budget performance report provides more useful information to England's managers than the simple static budget variance. What insights can England's managers draw from this performance report? Choose two reasons why the foxble budget performance report provides England's managers with more information than the simple static budget variance. C cted and sold them at a price than expected. A favorable sales revenue flexible budget variance means the sale price was higher than planned, A favorable salos volume variance reveals whether profits increased due to fewer units being sold. A favorable sales volume variance reveals whether profits increased due to more units being sold. An unfavorable sales revenue flexible budget variance means the sale price was higher than planned