Data Table Cellular Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units Sales Revenue 24 $ 8,500 204,000 $ 110,500 10,500 252,000 136,500 Variable Expenses Contribution Margin 7,000 168,000 $ 91,000 77,000 54,000 23,000 $ Fixed Expenses 93,500 54,000 39,500 $ 115,500 54,000 61,500 $ Operating Income Print Print Done Done x Data Table Cellular Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 259,000 Variable Expenses 141,500 Contribution Margin 117,500 Fixed Expenses 55,000 62,500 Operating Income Print Print Done Done | i 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? 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? Print Done Cellular Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 7,000, 8,500, and 10,500 units. The static budget was based on expected sales of 8,500 units. The company sold 10,500 units during July. Its flexible budget and actual operating income was as follows: E: (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 For the Month Ended July 31, 2018 1 2 3 (1)-(3) 5 4 (3) - (5) Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget Units Colae Davenna N N NNT ND Budget Flexible Sales Actual Budget Volume Static Amounts Per Unit Flexible Budget Results Variance Variance Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income Fixed Expenses Operating Income Requirement 2. What was the effect on Cellular'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 Cellular's operating income by $ L Requirement 2. What was the effect on Cellular'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 L Cellular's operating income by $ L Requirement 3. What is Cellular's static budget variance for operating income? meaning that its operating income is n expected Cellular's static budget variance is $ per the static budget. Requirement 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? Requirement 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? Choose two reasons why the flexible budget performance report provides Cellular's managers with more information than the simple static budget variance. These variances suggest that the marketing department did a expected. job. They sold units than expected and sold them at a price than