CellBase 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: k the icon to view the flexible budget.) ick the icon to view the income statement.) Read the requirements. Per Unit Results Variance Budget Variance Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income For the Month Ended July 31, 2018 Budget Amount per Unit Units Sales Revenue $ 20 $ 13 9,000 180,000 $ 117,000 10,500 210,000 $ 136,500 12,500 250,000 162.500 Variable Expenses Contribution Margin 63,000 52,000 73,500 52,000 Fixed Expenses 87,500 52,000 35,500 11,000 $ 21,500 $ Operating Income Data Table CellBase Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 257,000 Variable Expenses 167,600 Contribution Margin 89,400 Fixed Expenses 53,000 36,400 Operating Income Print Done Requirements 1. Prepare a flexible budget performance report for July. 2. What was the effect on CellBase's operating income of selling 2,000 units more than the static budget level of sales? 3. What is CellBase's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to CellBase's managers than the simple static budget variance. What insights can CellBase's managers draw from this performance report? Print Print Done Done