> Problems Group A P23-25A Preparing a flexible budget performance report Learning Objective 1 Cell One Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 6,000, 7,500, and 9,500 units. The static budget was based on expected sales of 7,500 units. 3. Static Bud Var. for Op inc $22,900 F 23 CELL ONE TECHNOLOGIES Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit 6,000 7,500 9,500 21 $126,000 $ 157,500 $ 199,500 10 60,000 75,000 95,000 66,000 82,500 104,500 55,000 55,000 55,000 S 11,000 $ 27,500 $ 49,500 Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income The company sold 9,500 units during July, and its actual operating income was as follows CELL ONE TECHNOLOGIES Income Statement For the Month Ended July 31, 2018 206,500 100,100 106,400 56,000 S 50,400 Sales Revenue Variable Expenses Contribution Margirn Fixed Expenses Operating Income Requirements 1. Prepare a flexible budget performance report for July. 2. What was the effect on Cell One's operating income of selling 2,000 units more than the static budget level of sales? 3. What is Cell One's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful infor- mation to Cell One's managers than the simple static budget variance. What insights can Cell One's managers draw from this performance report