P23-30B (similar to) A Question Help Phone 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: (Click the icon to view the flexible budget.) (Click the icon to view the income statement.) Data Table Read the requirements Phone Technologies Income Statement Requirement 1. Prepare a flexible budget performance report for July (Enter a "0" for any zero balances. For any 50 variances, leave the Favorable (F)/Unfavorable (U) input blank.) Phone Technologies Flexible Budget Performance Report Data Table For the Month Ended July 31, 2018 1 2. 4 5 (1)-(3) (3) -(5) For the Month Ended July 31, 2018 Sales Revenue $ 294,500 Variable Expenses 142,700 Contribution Margin 151,800 58,500 Fixed Expenses $ 93,300 Operating Income Budget Flexible Sales Amounts Actual Flexible Volume Static Budget Variance Per Unit Results Budget Variance Budget Units Print Done Sales Revenue Phone Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units 9,000 10,500 12,500 Sales Revenue $ 23 $ 207,000 $ 241,500 $ 287,500 Variable Expenses 11 99,000 115,500 137,500 Contribution Margin 108,000 126,000 150,000 Fixed Expenses 57,000 57,000 57,000 $ 51,000 $ 69,000 $ 93,000 Operating Income Variable Expenses Contribution Margin Fixed Expenses -X Requirements Operating Income 1. Prepare a flexible budget performance report for July 2. What was the effect on Phone's operating income of selling 2,000 units more than the static budget level of sales? 3. What is Phone's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to Phone's managers than the simple static budget variance. What insights can Phone's managers draw from this performance report? Print Done Print Done Choose from any list or enter any number in the input fields and then click Check Answer. parts Clear All Check