AllTalk Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2024 flexible budget shows output levels of 8,000, 9,500, and 11,500 units. The static budget was based on expected sales of 9,500 units. The company sold 11,500 units during July. Its flexible budget and actual operating income was as follows

AllTalk Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2024 flexible budget shows output levels of 8,000, 9,500, and 11,500 units. The static budget was based on expected sales of 9,500 units. The company sold 11,500 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.) Data Table Read the requirements. Data Table Requirements All Talk Technologies Income Statement All Talk Technologies Flexible Budget For the Month Ended July 31, 2024 Budget Amount per Unit 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? Units 8,000 For the Month Ended July 31, 2024 Sales Revenue $ 237,000 143,000 Variable Expenses Contribution Margin 94,000 59,500 Fixed Expenses $ 34,500 Operating Income 9,500 11,500 190,000 $ 230,000 Sales Revenue $ 20 $ 160,000 $ 12 96,000 114,000 Variable Expenses Contribution Margin Fixed Expenses 64,000 76,000 138,000 92,000 58,000 34,000 Print Done Done 58,000 58,000 18,000 $ $ 6,000 $ Operating Income Print Done Variable Expenses Contribution Margin Print Done Choose from any list or enter any number in the input fields and then continue to the next question 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.) 4 5 AllTalk Technologies Flexible Budget Performance Report For the Month Ended July 31, 2024 1 2 3 (1)-(3) Flexible Actual Budget Flexible Results Variance Budget Budget Amounts Per Unit (3) - (5) Sales Volume Variance Static Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses 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 Increase/ All Talk's operating income by Decrease 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. Favorable/ Unfavorable 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. A favorable sales revenue flexible budget variance means the sale price was higher than planned A favorable sales volume variance reveals whether profits increased due to fewer units being sold. A favorable sales volume variance reveals whether profits increased due to more units being sold. An unfavorable sales revenue flexible budget variance means the sale price was higher than planned. A favorable sales revenue flexible budget variance means the sale price was higher than planned. A favorable sales volume variance reveals whether profits increased due to fewer units being sold. A favorable sales volume variance reveals whether profits increased due to more units being sold. An unfavorable sales revenue flexible budget variance means the sale price was higher than planned. These variances suggest that the marketing department did a Good job. They sold More units than expected and sold them at a lower price than expected Poor Fewer Higher