England Technologies manufactures capacitors for cellular base stations and other communications 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: (Click the icon to view the flexible budget.) (Click the icon to view the income statement.) Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income England Technologies Flexible Budget Performance Report For the Month Ended July 31, 2024 2 3 4 (1)-(3) (3)-(5) Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget Requirements 1. Prepare a flexible budget performance report for July. 2. What was the effect on England's operating income of selling 2,000 units more than the static budget level of sales? 3. What is England's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to England's managers than the simple static budget variance. What insights can England's managers draw from this performance report? Data table Units England Technologies Flexible Budget For the Month Ended July 31, 2024 Budget Amount per Unit 8,500 10,000 12,000 Sales Revenue $ 22 $ 187,000 $ 220,000 $ 264,000 Variable Expenses 15 127,500 150,000 180,000 Contribution Margin 59,500 70,000 84,000 Fixed Expenses 54,000 54,000 54,000 $ 5,500 $ 16,000 $ 30,000 Operating Income Data table England Technologies Income Statement For the Month Ended July 31, 2024 Sales Revenue $ 271,000 185,100 Variable Expenses Contribution Margin 85,900 55,000 Fixed Expenses $ 30,900 Operating Income