NetTech Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 6,500 Sales Revenue $ 22 $ 143,000 $ 8,000 10,000 176,000 $ 220,000 96,000 120,000 Variable Expenses 12 78,000 80,000 100,000 Contribution Margin Fixed Expenses 65,000 57,000 8,000 $ 57,000 57,000 23,000 $ $ Operating Income 43,000 NetTech Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 227,000 Variable Expenses 125.000 Contribution Margin 102.000 Fixed Expens 58.000 44,000 Operating Income 09 NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 6,500. 8,000, and 10,000 units The static budget was based on expected sales of 8,000 units. The company sold 10,000 units during July. Its flexible budget and actual operating income was as follows: For the Month Ended July 31, 2018 1 2 3 (3) - (5) Budget Amounts Per Unit Actual Flexible Budget Variance Flexible Sales Volume Variance Statie Results Budget Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income Operating Income Requirement 2. What was the effect on NetTech'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 NetTech's operating income by 5 Requirement 3. What is NetTech's static budget variance for operating income? meaning that its operating income is than expected NetTech's static budget variance is s per the static budget Requirement 4. Explain why the flexible budget performance report provides more useful information to NetTech's managers than the simple static budget variance. What insights can NetTech's managers draw from this performance report? Choose two reasons why the flexible budget performance report provides NetTech'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 ho