Critiquing a Report,Preparing a Performance Budget Exchange Corp is a company that acts as a faclitator in tax- favored real estate swaps,such swaps know as 1031 exchanges permit participants to avoid some or all of the capital gains taxes that would otherwise be due.the bookkeeper for the company has been asked to prepare a report for the company to help its owner/manager analyze performance.The first such report appears below Exchange Corp. Analysis of Revenues and Costs For the Month Ended May 31 Planning Budget Actual Unit Revenues Units Rev and cost and cost Variances Exchanges completed 40 50 Revenue $395 $385 $10U Expenses: Legal&search fees 165 184 19U Office expenses 135 112 23F Equipment depreciation 10 8 2F Rent 45 36 9F Insurance 5 4 1F Total expense 360 340 16F Net operating income $35 $41 $6F Note that the revenues and costs in the above report are unit revenues and costs.For example,the average office expense is $135 per exchange completed on the planning budget,whereas the average actual office expense is $112 per exchange completed Legal and search fees is a variable cost ,office expenses is a mixed cost and equipment depreciation rent and insurance are fixed costs.In the planning budget the fixed component of office expenses was $5,200. All of the company's revenues come from fees collected when an exchange is completed Required 1.Evaluate the report prepared by the book keeper 2.Prepare a performance report that would help the owner/manager assess the performance of the company in May 3.Using the report you created,evaluate the performance of the company in May