NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2024 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: 1(Click the icon to view the flexible budget.) 2(Click the icon to view the income statement.) Read the requirements3. Requirement 1. Prepare a flexible budget performance report for July. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)/Unfavorable (U) input blank.)Requirement 1. Prepare a flexible budget performance report for July. (Enter a "0" for any zero balances. For any $0 variances, leave the Favorable (F)Unfavorable (U) input blank. ) NetTech Technologies Flexible Budget Performance Report For the Month Ended July 31, 2024 2 3 4 5 (1) - (3) (3) - (5) Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget Units 1) (2) Sales Revenue Variable Exponsos (6) Contribution Margin 7 Fixed Expenses 19 (10 Operating Income (11 ) (12) (13) (14) (15) (16)Requirement 2. What was the effect on NotTech's operating income of selling 2,000 units more than the static budget level of sales? Selling 2,000 units more than the static budgot level of sales (17) NetTech's operating income by Requirement 3. What is NotTech's static budget variance for operating income? NetTech's static budget variance is (18) meaning that its operating income is (19) than expected por the static budget. Requirement 4. Explain why the flexible budget performance report provides more useful information to NotTech's managers than the simple static budget variance. What insights can NotTech's managers draw from this performance report? Choose two reasons why the flexible budget performance report provides NotTech's managers with more information than the simple static budget variance. (20) (21) These variances suggest that the marketing department did a (22) job. They sold (23) units than expected and sold them at a (24) price than expected.(1) 0 (2) 0 (3) 0 (4) 0 (5) 0 (6) 0 (7) 0 (8) 0 (9) O OF OF OF OF OF OF OF OF OF OU OU OU OU OU OU OU OU OU (10) O (11) O (12) O (13) O (14) O OF O Flexible Budget Variance O Flexible Budget Variance OF OF OU O Sales Volume Variance O Sales Volume Variance OU OU O Static Budget Variance O Static Budget Variance (15) O (16) 0 (17) O (18) 0 (19) 0 O Flexible Budget Variance OF O increased O favorable O higher O Sales Volume Variance OU O decreased O unfavorable O lower O Static Budget Variance (20) O O A favorable sales revenue flexible budget variance means the sale price was higher than planned. O A favorable sales volume variance reveals whether profits increased due to fewer units being sold. O A favorable sales volume variance reveals whether profits increased due to more units being sold. O An unfavorable sales revenue flexible budget variance means the sale price was higher than planned. (21) 0 O A favorable sales revenue flexible budget variance means the sale price was higher than planned. O A favorable sales volume variance reveals whether profits increased due to fewer units being sold. O A favorable sales volume variance reveals whether profits increased due to more units being sold. O An unfavorable sales revenue flexible budget variance means the sale price was higher than planned. (22) O good (23) O fewer (24) O higher poor O more O lower1: Data Table NetTech Technologies Flexible Budget For the Month Ended July 31, 2024 Budget Amount per Unit Units 7,500 9,000 11,000 Sales Revenue S 25 $ 187,500 $ 225,000 $ 275,000 Variable Expenses 11 82,500 99,000 121,000 Contribution Margin 105,000 126,000 154,000 Fixed Expenses 54,000 54,000 54,000 $ 51,000 $ 72,000 $ 100,000 Operating Income : Data Table NetTech Technologies Income Statement For the Month Ended July 31, 2024 Sales Revenue $ 282,000 126,200 Variable Expenses Contribution Margin 155,800 55,000 Fixed Expenses $ 100,800 Operating Income