P23-30B Preparing a flexible budget performance report Learning Objective 1 Cell Plus Technologies manufactures capacitors for cellular base stations and other communication applications. The company's July 2018 flexible budget shows output 3. Static Bud. Var. for Op. Inc. levels of 8,500,10,000, and 12,000 units. The static budget was based on expected $22,900F sales of 10,000 units. The company sold 12,000 units during July, and its actual operating income was as follows: Requirements 1. Prepare a flexible budget performance report for July 2018. 2. What was the effect on Cell Plus's operating income of selling 2,000 units more than the static budget level of sales? 3. What is Cell Plus's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to Cell Plus's managers than the simple static budget variance. What insights can Cell Plus's managers draw from this performance report? 2 3