Network Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 8,500, 10,000, and 12,000 units. The static budget was based on expected sales of 10,000 units. The company sold 12,000 units during July. Its flexible budget and actual operating income was as follows: Network Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units Sales Revenue 25 $ 8,500 212,500 $ 102,000 10,000 250,000 $ 120,000 12,000 300,000 144,000 Variable Expenses 12 Contribution Margin 110,500 52,000 130,000 52,000 156,000 52,000 Fixed Expenses $ 58,500 $ 78,000 $ 104,000 Operating Income Network Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 307,000 Variable Expenses 149,200 Contribution Margin 157,800 Fixed Expenses 53,000 $ 104,800 Operating Income Flexible Budget Performance Report For the Month Ended July 31, 2018 2 (1)-(3) (3) -(5) Budget Flexible Sales Amounts Actual Budget Flexible Volume Static Per Unit Results Variance Budget Variance Budget Jnits Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income