Cellular 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

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Cellular 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 12,500 22 $198,000 231,000 $ 275,000 150,000 125,000 54,000 $ 36,000 $51,000 $ 71,000 9,000 10,500 108,000 90,000 54,000 126,000 105,000 54,000 12 Cellular Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income $ 282,000 155,000 127,000 55,500 $ 71,500