AllTalk Technologies manufactures capacitors for cellular base stations and other communications applications. The company's January 2012 fiexible budget income statement shows output levels of 6.500, 8.000, and 10.000 units. Ea (Click the icon to view the flexible budget income statement EA (Click the icon to view the income statement Requirements 1. Prepare an income statement performance report for January. 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? Explain why the income statement 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? Requirement 1 Prepare the income statement performance report. (For accounts with a S0 balance, make sure to enter "0 in the appropriate column.) AllTalk Technologies Income Statement Performance Report Month Ended January 31, 2012 Flexible Budget for Actual Results at Flexible Budget Actual Number of Sales Volume Static (Master) Actual Prices Variance Output Units Variance Budget Output units Sales revenue Variable expenses Contribution margin Fixed expenses Operating income