AllTalk 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: (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 *o* for any zoro balance. For any $0 variances, leave the Favorable (Funfavorable (U) input blank.) AllTalk Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 ra 1 2 3 4 5 Budget Amounts Per Unit (3) - (5) Sales Volume Variance Actual cd Flexible Budget Variance Flexible Budget Static Budget Results Units Sales Revenue Variable Expenses Contribution Margin Fired Expenses Operating Income BOEDE un se i Data Table AllTalk Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 9,000 10,500 12,500 20 $ 180,000 $ 210,000 $ 250,000 Sales Revenue $ 13 136,500 162,500 Variable Expenses Contribution Margin Fixed Expenses 73,500 87,500 117,000 63,000 51,000 12,000 $ 51,000 22,500 $ 51,000 36,500 $ Operating Income print nona X i Data Table AllTalk Technologies Incfme Statement For the Month Ended July 31, 2018 Sales Revenue $ 257,000 167,700 Variable Expenses Contribution Margin 89,300 52,500 Fixed Expenses $ 36,800 Operating Income Print Done X. Requirements 1. Prepare a flexible budget performance report for July. 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 for operating income? 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? Print Done