#4. Magnet Technologies manufactures refrigerator magnets for companies as promotional items. The company's July 2019 Flexible Buc shows output levels of 3,000, 5,000 and 7,000 units. The static budget was based on 5,000 units Budget Formula $40 $19 Units Sales Variable Expenses Contribution Margin Fixed Expenses Net Income 3,000 $120.000 $57,000 $63,000 $32.000 $31,000 5.000 $200,000 $95,000 $105,000 $32,000 $73,000 7.000 $280.000 $133,000 $147,000 $32,000 $115,000 The company sold 7,000 units and it's actual results are as follows: Sales Variable Expenses Contribution Margin Fixed Expenses Net Income $297,000 $151,000 $146,000 $34,000 $112.000 Required: 1. Prepare the Flexible Budget Performance Report 2. What is the effect on net income on Magnet Technologies from selling more units that the Master Budget anticipated? 3. Why are flexible budget reports useful to managers