AIT Technologies manufactures capacitors for celular base stations and other communications applications. The company's July 2016 flexible budget shows output levels of 7.000 8.500, and 10,500 units The state budget was based on expected sales of 8.500 units. The company sold 10.500 units during July. Is feasible 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 Requirement 1. Prepare a fostle budget performance report for July (Enter a *v* for any zero balances. For any so variances, leave the Favorable (Untevorable (U) input blank) AllTalk Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 2 3 5 4 Sales Dudget Amounts Actual Results Flexible Budget Variance Flexible Budget Perle State Budget Variance Sales Reve Choose from anys or enter any number in the routes and then Che Answer 5 pants (Similar to) AllTalk Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budg 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: (Click the icon to view the flexible budget.) (Click the icon to view the income statement) Read the requirements 2 3 (1)-(3) (3) - (5) Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget Units 1 5 Sales Revenue Variable Expenses Contribution Margin Fixed Expenses ODODD O0000 Operating Income - X Requirements 1. Prepare a flexible budget performance report for July. 2. What was the effect on AllTalk's operating income of selling 2,000 units more than the static budget level of sales? 3. What is AllTalk's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to AllTalk's managers than the simple static budget variance. What insights can AllTalk's managers draw from this performance report? Print Done AllTalk Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 7.000 8,500 10.500 Sales Revenue $ 20 $ 140,000 $ 84.000 170,000 $ 102,000 210.000 126.000 12 Variable Expenses Contribution Margin Fixed Expenses 56,000 50.000 68,000 50.000 84.000 50.000 Operating Income S 6.000 $ 18.000 $ 34.000 an Print Done Data Table 3 (3) ible get Flexible ance Budget AllTalk Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 217,000 Variable Expenses 131,000 Contribution Margin 86,000 Fixed Expenses 51,000 $ Operating Income 35,000 Print Done leidis and then click here
