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Cellular 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: tatomont i Requirements X i Data Table - X ze 1. Prepare a flexible budget performance report for July. 2. What was the effect on Cellular's operating income of selling 2,000 units more Cellular Technologies than the static budget level of sales? Flexible Budget 3. What is Cellular's static budget variance for operating income? For the Month Ended July 31, 2018 4. Explain why the flexible budget performance report provides more useful Budget information to Cellular's managers than the simple static budget variance. Amount What insights can Cellular's managers draw from this performance report? per Unit S Units 6,500 8,000 10,000 Print Done Sales Revenue 23 $ 149,500 $ 184,000 $ 230,000 Variable Expenses 13 84,500 104,000 130,000 Contribution Margin 65,000 80,000 100,000 Cellular Technologies Fixed Expenses 53.000 53,000 53,000 Income Statement $ 12,000 $ 27,000 $ 47,000 Operating Income For the Month Ended July 31, 2018 Sales Revenue $ 237,000 Print Done Variable Expenses 135, 100 Contribution Margin 101,900 Fixed Expenses 54,500 $ 47,400