England 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: (Click the icon to view the flexible budget.) 3 (Click the icon to view the income statement.) Read the requirements Data table Data table England Technologies England Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount Requirement 1. Prepare a flexible budget performance report for July (Enter a "0" for any zero balances. For any $0 variances, le Income Statement per Unit England Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 Units 9,000 10,500 12,500 Sales Revenue $ 1 2 3 For the Month Ended July 31, 2018 Sales Revenue $ 307,000 Variable Expenses 155,000 Contribution Margin 152,000 52,000 Fixed Expenses $ 100,000 Operating Income 4 5 (1)-(3) (3) - (5) Variable Expenses Contribution Margin 24 $ 216,000 $ 252,000 $ 300,000 12 108,000 126,000 150,000 108,000 126,000 150,000 51,000 51,000 51,000 $ 57,000 $ 75,000 $ 99,000 Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Fixed Expenses Per Unit Variance Variance Operating Income Results 12500 Budget 12500 Budget 12500 Units 24 Print Done Sales Revenue 12 Print Variable Expenses Contribution Margin Done ODDI Fixed Expenses Operating Income Requirement 2. What was the effect on England'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 England's operating income by $ Requirement 3. What is England's static budget variance for operating income? England's static budget variance is $ meaning that its operating income is than expected per the static budget. Requirement 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? Choose two reasons why the flexible budget performance report provides England'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