NetTech Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 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: (Click the icon to view the flexible budget.) (Click the icon to view the income statement.) Read the requirements. i Data Table i Data Table i Requirements NetTech Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 249,000 Variable Expenses 126,000 Contribution Margin 123,000 Fixed Expenses 51,500 $ 71.500 Operating Income NetTech Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount 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 slalic budget variance for operating income? 4. Explain why the flexible budget performance report provides more usefu information to Net Tech's managers than the simple static budget varlance. What insights can NetTech's managers draw from this performance report? per Unit Units 7,500 9,000 Print Done $ 22 $ 165,000 $ 82,500 198,000 S 99,000 Sales Revenue Variable Expenses Contribution Margin 11,000 242,000 121,000 11 32,500 Print Done 99,000 50,000 121,000 50,000 Fixed Expenses 50,000 $ 32,500 $ 49,000 S 71,000 Operating Income Print Done Choose from any list or enter any number in the input fie ? NetTech Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 1 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 Sales Revenue Variable Expenses Contribution Margin Fixed Expenses 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 $ 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 $ 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. 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. cted and sold them at a price than expected. A favorable sales revenue flexible budget variance means the sale price was higher than planned. A favorable sales volume variance reveals whether profits increased due to fewer units being sold. A favorable sales volume variance reveals whether profits increased due to more units being sold. An unfavorable sales revenue flexible budget variance means the sale price was higher than planned. 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 v NetTech's operating income by $ Requirement 3. What is NetTech's static budget variance for o increased Not Toob'e atotie budoet variance is decreased atite onerotina income is then evnected