m 2016 for All-Star Fender . llepare a standard cost income statement for problems Group A P8-25A Prep Small Talk Preparing a flexible budget performance report Talk Technologies manufactures capacitors for cellular base stations and other unications applications. The company's July 2016 flexible budget shows output s of 7.500, 9,000, and 11,000 units. The static budget was based on expected Learning Objective 1 1. Static Bud. Var for Op. $20,800 F sales of 9,000 units. SMALL TALK TECHNOLOGIES Flexible Budget For the Month Ended July 31, 2016 Budget Amount per Unit 524 14 Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income 7,500 9.000 11,000 $ 180,000 $216,000 5 264,000 105,000 126,000 154,000 75,000 90,000 110,000 53,000 53.000 53,000 $ 22,000 $ 37,000 $ 57,000 and its actual operating inco The company sold 11,000 units during July, and its follows: $ 271,000 SMALL TALK TECHNOLOGIES Income Statement For the Month Ended July 31, 2016 Sales Revenue Variable Expenses 159,200 Contribution Margin 111,800 Fixed Expenses Operating Income 54,000 $ 57,800 ling 2,000 units more Requirements 1. Prepare a flexible budget performance report for July. 2. What was the effect on Small Talk's operating income of selline 2 than the static budget level of sales? 3. What is Small Talk's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more tion to Small Talk's managers than the simple static budget variance. What in can Small Talk's managers draw from this performance report