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: E (Click the icon to view the flexible budget.) 5 Click the icon to view the income statement.) Read the requirements Flexible Sales Budget Amounts Per Unit Actual Flexible Static Budget Variance Volume Variance Budget Results 8000 Budget 8000 Units Sales Revenue 25 11 Variable Expenses Contribution Margin DDDD Fixed Expenses Operating Income -X - X i Data Table Data Table sto AllTalk Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount AllTalk Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 257,000 Variable Expenses 115,200 Contribution Margin 141,800 Fixed Expenses 51,500 $ 90,300 Operating Income per Unit Units 6,500 8,000 10.000 Sales Revenue $ 25 $ 162,500 $ 71,500 200,000 $ 88,000 250,000 110,000 11 Variable Expenses Contribution Margin 91,000 50.000 112,000 50,000 140,000 50.000 Print Done Fixed Expenses 14 000 non Ann Print Done Cical RIT CI A Question Hel Data Table -X flexible budget shows output levels of 6,500, 8,000, and 10,000 units. The static budge Requirements Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 6,500 8,000 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? Sales Revenue $ 25 $ 162,500 $ 71,500 10,000 250,000 110,000 200,000 $ 88,000 11 Variable Expenses Contribution Margin 91,000 50.000 112,000 50.000 140,000 50,000 Fixed Expenses Print Done $ 41,000 $ 62,000 $ 90,000 Operating Income Print Done Check