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.) B (Click the icon to view the income statement.) Read the requirements For the Month Ended July 31, 2018 - X - X 1 3 4 5 Data table Data table 2 (1)-(3) (3) - (5) Budget Flexible Sales Amounts Actual Volume Static Budget Variance Flexible Budget Per Unit Results Variance Budget Phone Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit Units Phone Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue S 307.000 155,000 Variable Expenses Contribution Margin 152,000 Fixed Expenses 51,000 $ 101,000 Operating Income Sales Revenue Variable Expenses Contribution Margin Fixed Expenses $ Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses 9,000 10,500 12,500 24 S 216,000 $ 252,000 S 300,000 12 108,000 126,000 150,000 108,000 126,000 150,000 50,000 50,000 50.000 S 58,000 $ 76,000 S 100,000 S Operating Income Operating Income Print Done Print Done Requirement 2. What was the effect on Phone'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 Phone's operating income by S Requirement 3. What is Phone's static budget variance for operating income? meaning that its operating income is than expected Phone's static budget variance is $ per the static budget. Requirement 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? Choose two reasons why the flexible budget performance report provides Phone'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