AllNet Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 7,500, 9,000, and 11,000 units. The static budget was based on expected sales of 9,000 units. The company sold 11,000 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 Requirement 1. Prepare a flexible budget performance report for July (Enter a "0" for any zero balances. For any 50 variances, leave the favorable (F/Unfavorable (U) input blank.) X AllNet Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 2 3 Data table Data table 4 5 (1)-(3) (3) - (5) Sales Flexible Budget Amounts Per Unit AllNet Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Volume Static Actual Results 11,000 Budget Variance Flexible Budget 11,000 Variance Budget 9,000 Units 7,500 Units 9,000 11,000 AllNet Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 249,000 Variable Expenses 137,000 Contribution Margin 112,000 Fixed Expenses 55,000 $ 57,000 Operating Income $ Sales Revenue 22 Sales Revenue $ 22 $ 165,000 $ 198,000 $ 242,000 12 12. 90,000 Variable Expenses Contribution Margin Fixed Expenses Variable Expenses Contribution Margin Fixed Expenses 108,000 90,000 132,000 110,000 75,000 54,000 Operating Income 54,000 21,000 $ 54,000 56,000 $ 36,000 $ Operating Income 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