AllNet Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 8,000, 9,500, and 11,500 units. The static budget was based on expected sales of 9,500 units. The company sold 11,500 units during July. Its flexible budget and actual operating income was as follows: (Click the icon to view the flexible budget.) Read the requirements (Click the icon to view the income statement.) KIID Requirement 1. Prepare a flexible budget performance report for July. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (FY/Unfavorable (U) input blank.) AllNet Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 Units Sales Revenue Variable Expenses Ed Contribution Margin Fixed Expenses Operating Income Data table 1 2 3 5 (1)-(3) (3)-(5) Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget AllNet Technologies Flexible Budget For the Month Ended July 31, 2018 Data table AllNet Technologies Income Statement For the Month Ended July 31, 2018 Budget Amount per Unit Units 8,000 9,500 Sales Revenue S 22 5 176,000 $ 209,000 $ 253,000 Variable Expenses 11 88,000 Contribution Margin Fixed Expenses Operating Income 104,500 88,000 104.500 50,000 50.000 38,000 $ 54,500 $ 126,500 Sales Revenue $ 260,000 Variable Expenses Contribution Margin 131,700 128,300 11,500 51,000 Fixed Expenses $277,300 Operating Income 126,500 50,000 76,500 Print Done Requirements 1. Prepare a flexible budget performance report for July 2. What was the effect on AllNet's operating income of selling 2,000 units more than the static budget level of sales? 3. What is AllNet's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to AllNet's managers than the simple static budget variance. What insights can AllNet's managers draw from this performance report? X