Network 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: (Click the icon to view the flexible budget.) (Click the icon to view the income statement.) Read the Requirements 1. Prepare a flexible budget performance report for July. 2. What was the effect on Network's operating income of selling 2,000 units more than the static budget level of sales? 3. What is Network's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to Network's managers than the simple static budget variance. What insights can Network's managers draw from this performance report? Data table Data table Network Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 1 2 3 5