What was the effect on Network Technologies operating income of selling 2000 units more than the static budget level of sales?

What is Network Technologies static budget variance for operating income?

Explain why the flexible budget performance report provides more useful information to Network Technologies managers than the simple static budget variance. What insights can Network Technologies managers draw from this performance report?

Network 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: (Click the icon to view the flexible budget.) (Click the icon to view the income statement.) Read the requirements. - 5 Network Technologies Flexible Budget Performance Report For the Month Ended July 31, 2018 3 (1)-(3) Flexible Actual Budget Flexible Results Variance Budget 4 (3) - (5) Sales Budget Amounts Per Unit Volume Variance Static Budget Units Sales Revenue Variable Expenses Contribution Margin Fixed Expenses Operating Income Network Technologies Flexible Budget For the Month Ended July 31, 2018 Budget Amount per Unit 6,500 25 $ 162,500 $ 71,500 Units Sales Revenue 8,000 200,000 $ 88,000 11 Variable Expenses Contribution Margin 10,000 250,000 110,000 140,000 58,000 82,000 Fixed Expenses 91,000 58,000 33,000 $ 112,000 58,000 54,000 $ $ Operating Income Network Technologies Income Statement For the Month Ended July 31, 2018 Sales Revenue $ 257,000 Variable Expenses 115,100 Contribution Margin 141,900 Fixed Expenses 59,000 82.900 Operating Income 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