NetTech 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: E (Click the icon to view the flexible budget.) E: (Click the icon to view the income statement.) Data Table 1 Read the requirements Requirement 1. Prepare a flexible budget performance report for July (Enter a "0" for any zero balances. For any $0 varian NetTech Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 NetTech Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount 1 2 3 4 5 (1)-(3) (3) - (5) Budget Flexible Sales per Unit Amounts Actual Budget Flexible Volume Static Units Per Unit Results Variance Budget Variance Budget Sales Revenue $ Units Variable Expenses Contribution Margin Fixed Expenses Sales Revenue 9,000 10,500 12,500 23 $ 207,000 $ 241,500 $ 287,500 15 135,000 157,500 187,500 72,000 84,000 100,000 56.000 56,000 56,000 $ 16,000 $ 28,000 $ 44.000 Variable Expenses Contribution Margin Operating Income Fixed Expenses Operating Income Print Done Choose from any list or enter any number in the input fields and then click Check Answer. Requirements x 1. Prepare a flexible budget performance report for July. 2. What was the effect on NetTech's operating income of selling 2,000 units more than the static budget level of sales? 3. What is NetTech's static budget variance for operating income? 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? * Data Table -X NetTech Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 294,500 Variable Expenses 192,600 Contribution Margin 101,900 Fixed Expenses 57,000 44,900 Operating Income $