CellBase Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 7,000, 8,500, and 10,500 units. The static budget was based on expected sales of 8,500 units. The company sold 10,500 units during July. Its flexible budget and actual operating income was as follows Click the icon to view the flexible budget) Read the requirements (Click the icon to view the income statement.) 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.) Flexible Budget Performance Report For the Month Ended July 31, 2018 Budget Amounts Actual Per Unit Results Flexible Sales Budget Volume Static Budget Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income Requirement 2. What was the effect on CellBase'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 Requirement 3. What is CellBase's static budget variance for operating income? CellBase's static budget variance is $ per the static budget Requirement 4. Explain why the flexible budget performance report provides more useful information to CellBase's managers than the simple static budget CelBase's operating income by $ meaning that its operating income is than expected variance. What insights can CellBase's managers draw from this perfomance report? Choose two reasons why the flexible budget performance report provides CellBase's managers with more information than the simple static budget variance These variances suggest that the marketing department did a ob. They sold units than expected and sold them at a price than expected. Data Table CellBase Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income $ 269,500 120,500 149,000 53,000 $ 96,000 Print Done Data Table CellBase Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income 7,000 10,500 25 $ 175,000 $ 212,500 $ 262,500 115,500 147,000 52,000 $ 46,000 $ 67,000 $ 95,000 8,500 77,000 98,000 52,000 93,500 119,000 52,000 Print Done 1 Requirements 1. Prepare a flexible budget performance report for July. What was the effect on CellBase's operating income of selling 2,000 units more than the static budget level of sales? What is CellBase's static budget variance for operating income? 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? 2. 3. 4. Print Done