Cell Plus Technologies manufactures capacitors for cellular base stations and other communication applications. The company's July 2024 flexible budget shows output levels of 8,500, 10,000,and 12,000 units. The static budget was based on expected sales of 10,000 units. The company sold 12,000 units during July. Its flexible budget and actual operating income was as follows:

Requirement 1. Prepare a flexible budget performance report for July. (Enter a "O" for any zero balances. For any $0 variances, leave the favorable (F/Unfavorable (U) input blank.) Cell Plus Technologies Flexible Budget Performance Report Data Table For the Month Ended July 31, 2024 1 2 3 4 5 Cell Plus Technologies (1)-(3) (3) - (5) Income Statement Budget Flexible Sales For the Month Ended July 31, Amounts Actual Budget Flexible Volume , Static 2024 Per Unit Results Variance Budget Variance Budget Sales Revenue $295,000 Units Variable Expenses 161,100 Sales Revenue Contribution Margin 133,900 Variable 58,000 Data Table Expenses Fixed Expenses Contribution S 75,900 Operating Income Margin Cell Plus Technologies Flexible Budget Fixed Expenses For the Month Ended July 31, 2024 Operating Print Done In Budget Income Amount per Unit 8,500 10,000 12,000 24 $204,000 $240,000 $288,000 $ 13 110,500 130,000 156.000 Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income Requirement 2. What was the effect on Cell Plus's operating income of selling 2,000 units more than the static budget level of sales? Selling 2,000 units more than the static Cell Plus's operating budget level of sales income by 93,500 110,000 132,000 57,000 57,000 57,000 $ 36,500 $ 53,000 S 75,000 Requirement 3. What is Cell Plus's static budget variance for operating income? Print Done Cell Plus's static budget meaning that its operating than variance is Income is expected per the static budget. Requirement 4. Explain why the flexible budget performance report provides more useful information to Cell Plus's managers than the simple static budget variance. What insights can Cell Plus's managers draw from this performance report? Choose two reasons why the flexible budget performance report provides Cell Plus'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 price than expected