Please do all the requirements

Phone Technologies manufactures capacitors for cellular base stations and other communications applications. The company's July 2018 flexible budget shows output levels of 8,000, 9,500, and 11,500 units. The static budget was based on expected sales of 9,500 units. The company sold 11,500 units during July. Its flexible budget and actual operating income was as follows: (Click the icon to view the flexible budget.) E: (Click the icon to view the income statement.) Read the requirements 4 5 (3) - (5) Sales Budget Amounts Flexible Budget Performance Report For the Month Ended July 31, 2018 1 2 3 (1)-(3) Flexible Actual Budget Flexible Results Variance 11500 11500 260000 F 253000 154700 U 149500 Volume Per Unit Budget Variance Static Budget 9500 Units Sales Revenue 22 F 209000 13 123500 Variable Expenses Contribution Margin U 18000/F 105300 F 103500 85500 57000 58500 Fixed Expenses U 57000 0 46800 F 46500 18000 28500 Operating Income Phone Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 260,000 Variable Expenses 154,700 Contribution Margin 105,300 58,500 Fixed Expenses $ 46,800 Operating Income Phone Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit 8,000 22 $ 176,000 $ 13 104,000 9,500 11,500 Units Sales Revenue GA 209,000 $ 123,500 253,000 149,500 Variable Expenses Contribution Margin 72,000 57,000 85,500 57,000 103,500 57,000 Fixed Expenses $ 15,000 $ 28,500 $ 46,500 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