NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2024 flexible budget shows output levels of 5,500, 7,000, and 9,000 units. The static budget was based on expected sales of 7,000 units. The company sold 9,000 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.) Read the requirements x Data Table Data Table Requirement 1. Prepare a flexible budget performance report for July (Enter a "0" for any zero balances. For any $0 variances, leave the Favor Net Tech Technologies Flexible Budget Performance Report For the Month Ended July 31, 2024 1 2 3 Net Tech Technologies Flexible Budget For the Month Ended July 31, 2024 Budget Amount 4 5 (3) - (5) Sales NetTech Technologies Income Statement For the Month Ended July 31, 2024 Sales Revenue $ 232,000 122,100 Variable Expenses Contribution Margin 109,900 54,000 Fixed Expenses $ 55,900 Operating Income per Unit (1)-(3) Flexible Budget Variance Budget Amounts Units 5,500 7,000 9,000 Actual Flexible Volume Static $ Results Sales Revenue Per Unit 25 $ Variance Budget Budget 13 Units Variable Expenses Contribution Margin Fixed Expenses 137,500 $ 175,000 $225,000 71,500 91,000 117,000 66,000 84,000 108,000 53,000 53,000 53,000 13,000 $ 31,000 $ 55,000 Sales Revenue Requirements Print Done $ Variable Expenses Contribution Margin Fixed Expenses Operating Income Print Done Operating Income 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? NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2024 flexible budget shows output levels of 5,500, 7,000, and 9,000 units. The static budget was based on expected sales of 7,000 units. The company sold 9,000 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.) Read the requirements x Data Table Data Table Requirement 1. Prepare a flexible budget performance report for July (Enter a "0" for any zero balances. For any $0 variances, leave the Favor Net Tech Technologies Flexible Budget Performance Report For the Month Ended July 31, 2024 1 2 3 Net Tech Technologies Flexible Budget For the Month Ended July 31, 2024 Budget Amount 4 5 (3) - (5) Sales NetTech Technologies Income Statement For the Month Ended July 31, 2024 Sales Revenue $ 232,000 122,100 Variable Expenses Contribution Margin 109,900 54,000 Fixed Expenses $ 55,900 Operating Income per Unit (1)-(3) Flexible Budget Variance Budget Amounts Units 5,500 7,000 9,000 Actual Flexible Volume Static $ Results Sales Revenue Per Unit 25 $ Variance Budget Budget 13 Units Variable Expenses Contribution Margin Fixed Expenses 137,500 $ 175,000 $225,000 71,500 91,000 117,000 66,000 84,000 108,000 53,000 53,000 53,000 13,000 $ 31,000 $ 55,000 Sales Revenue Requirements Print Done $ Variable Expenses Contribution Margin Fixed Expenses Operating Income Print Done Operating Income 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