Homework: Chapter 23 Homework Save Score: 0 of 1 pt 3 of 4 (3 complete) HW Score: 50%, 2 of 4 pts AllTalk Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 7,500,9,000, and 11.000 units. The static budget was based on expected sales of 9,000 units. The company sold 11,000 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.) Data Table Read the requirements Budget Flexible Sales Amounts Actual Budget Flexible Volume Static AllTalk Technologies Per Unit Results Variance Budget Variance Budget Income Statement Units 11,000 11,000 9,000 Sales Revenue For the Month Ended July 31, 2018 $ 20 $ 227,000S 7,000 F $ 220,000's 40,000 F S 180,000 Sales Revenue S Variable Expenses 227,000 11 126,200 5.200 U 121,000 22,000 u 99,000 Variable Expenses 126,200 Contribution Margin 100,800 1,800F 99.000 18,000 F 81,000 54.000 Contribution Margin 100,800 Fixed Expenses 1,000 53.000 0 53,000 Fixed Expenses 54,000 46,800S $ 800 $ Operating Income 46,000 $ 18.000 S 28,000 F $ Operating Income 46,800 U Print Done Amount per Unit Requirements Units 7,500 9,000 11,000 Sales Revenue $ 20 $ 150,000 $ 82,500 180,000 $ 99,000 220,000 121,000 11 Variable Expenses Contribution Margin Fixed Expenses 67,500 1. Prepare a flexible budget performance report for July. 2. What was the effect on AllTalk's operating income of selling 2,000 units more than the static budget level of sales? 3. What is AllTalk's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to AllTalk's managers than the simple static budget variance. What insights can AllTalk's managers draw from this performance report? 81,000 99,000 53,000 53,000 53,000 28,000 $ 14,500 $ Operating Income 46,000