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:

Requirement 1. Prepare a flexible budget performance report for July. (Enter a "O" for any zero balances. For any $0 variances, leave the Favorable (F/Unfavorable (U) input blank.) i Data Table Phone Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 5 (1)-(3) Budget Amounts Per Unit 4 (3) - (5) Sales Volume Variance Flexible Budget Variance Actual Results Flexible Budget Static Budget Units Sales Revenue Units Phone Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit 6,500 $ 22 $ 143,000 $ 14 91.000 52,000 51.000 $ 1,000 $ Sales Revenue Variable Expenses Contribution Margin Fixed Expenses DDDDD OOOOO Variable Expenses Contribution Margin 8,000 176,000 $ 112,000 64,000 51,000 13,000 $ 10,000 220,000 140,000 80,000 51,000 29,000 Operating Income Fixed Expenses Operating Income 0 Data Table Print Done Phone Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 227,000 Variable Expenses 145, 100 Contribution Margin 81,900 Fixed Expenses 52,000 $ 29,900 Operating Income Print Done