AllTalk Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 6,500, 8,000, and 10,000 units. The static budget was based on expected sales of 8,000 units. The company sold 10,000 units during July. Its flexible budget and actual operating income was as follows: (Click the icon to view the flexible budget.) B 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 (F)/Unfavorable (U) input blank.) Data Table Data Table All Talk Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 1 2 3 4 All Talk Technologies (3) - (5) (1)-(3) Flexible Income Statement Budget Sales All Talk Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget Units Units 6,500 8,000 10,000 For the Month Ended July 31, 2018 Sales Revenue $ 237,000 Variable Expenses 145,200 Contribution Margin 91,800 Fixed Expenses 54.000 $ 37,800 Operating Income Sales Revenue Sales Revenue $ 23 $ 149,500 $ 14 91,000 Variable Expenses Contribution Margin Fixed Expenses Variable Expenses Contribution Margin 58,500 184,000 $ 230,000 112,000 140,000 72,000 90,000 53,000 53,000 19,000 $ 37,000 Fixed Expenses Operating Income 53,000 5,500 $ $ Print Done Operating Income Operating Income Requirement 2. What was the effect on AllTalk's operating income of selling 2,000 units more than the static budget level of sales? Selling 2,000 units more than the static budget level of sales AllTalk's operating income by $ Requirement 3. What is AllTalk's static budget variance for operating income? meaning that its operating income is than expected AllTalk's static budget variance is $ per the static budget. Requirement 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? Choose two reasons why the flexible budget performance report provides AllTalk's managers with more information than the simple static budget variance These variances suggest that the marketing department did a job. They sold units than expected and sold them at a V price than expected