Phone Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 6,500, 8,000, and 10,000 units. The static budget was based on expected sales of 8,000 units. The company sold 10,000 units during July. Its flexible budget and actual operating income was as follows:

i Data Table Phone Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units R 255 12 6,500 162,500 $ 78,000 8,000 200,000 $ 96,000 10,000 250,000 120,000 Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income 84,500 50,000 34,500 $ 104,000 50,000 54,000 $ 130,000 50,000 80,000 $ Phone Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 257,000 Variable Expenses 125,000 Contribution Margin 132,000 Fixed Expenses 51,000 81,000 Operating Income 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.) Phone Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 2 (1)-(3) Flexible Actual Budget Flexible Results Variance Budget Budget Amounts Per Unit (3) -(5) Sales Volume Variance Static Budget nce Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income