Technologies manufactures capacitors for cellular base stations and other communications applications. The company's

July 2018 flexible budget shows output levels of 5,500, 7,000, and 9,000 units. The static budget was based on expected sales of

7,000 units. The company sold 9,000 units during July Its flexible budget and actual operating income was as follows:

i Data Table Network Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit 5,500 24 $ 132,000 $ 13 71,500 60,500 53.000 $ 7,500 $ Units Sales Revenue 9 ,000 216,000 117,000 Variable Expenses Contribution Margin 7,000 168,000 $ 91,000 77,000 53.000 24,000 $ Fixed Expenses 99,000 53,000 46,000 Operating Income Print Done i Data Table che Favor Network Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 223,000 122,200 Variable Expenses Contribution Margin 100,800 Fixed Expenses 54,500 $ 46,300 Operating Income Print Done Requirements 1. Prepare a flexible budget performance report for July 2. What was the effect on Network's operating income of selling 2,000 units more than the static budget level of sales? 3. What is Network's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to Network's managers than the simple static budget variance. What insights can Network's managers draw from this performance report? Print Done 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.) Network Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 3 (1)-(3) 5 4 (3) - (5) Budget Amounts Per Unit Actual Results Flexible Budget Variance Flexible Budget Sales Volume Variance Static Budget Units Sales Revenue Variable Expenses Contribution Margin DOIDO Fixed Expenses Operating Income i Data Table x Data Table Network Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Network Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 223,000 Variable Expenses 122,200 Contribution Margin 100,800 Fixed Expenses 54,500 46,300 Operating Income Amount per Unit Units 9 24 $ Sales Revenue Variable Expenses 5,500 132,000 $ 71,500 7,000 168,000 $ 91,000 ,000 216,000 117,000 13 Print Contribution Margin Print Done ] Fixed Expenses 60,500 53,000 7,500 $ 77,000 53,000 24,000 $ 99,000 53,000 46,000 $ Operating Income Print Done 0 Requirements 1. Prepare a flexible budget performance report for July 2. What was the effect on Network's operating income of selling 2,000 units more than the static budget level of sales? 3. What is Network's static budget variance for operating income? 4. Explain why the flexible budget performance report provides more useful information to Network's managers than the simple static budget variance What insights can Network's managers draw from this performance report? Print Done