AllNet Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 9,000, 10,500, and 12,500 units. The static budget was based on expected sales of 10,500 units. The company sold 12,500 units during July. Its flexible budget and actual operating income was as follows: 5 Click the icon to view the flexible budget.) E (Click the icon to view the income statement.) Read the requirements. .... Requirement 1. Prepare a flexible budget performance report for July. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (FYUnfavorable (U) input blank.) AllNet Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 1 2 3 4 5 (1)-(3) (3) - (5) Flexible Sales Budget Amounts Actual Flexible Volume Static Budget Variance Per Unit Results Budget Variance Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income 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? Data Table AllNet Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 9,000 10,500 12,500 Sales Revenue 23 $ 207,000 $ 241,500 $ 287,500 Variable Expenses 11 99,000 115,500 137,500 Contribution Margin 108,000 126,000 150,000 Fixed Expenses 50,000 50,000 50,000 $ 58,000 $ 76,000 $ 100,000 Operating Income Data Table AllNet Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 294,500 Variable Expenses 142,600 Contribution Margin 151,900 Fixed Expenses 51,500 $ 100,400 Operating Income