Exchange Corp. is a company that acts as a facilitator 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 forthe company has been asked to prepare a report for the company to help its owner/manager analyze performance. The first such report appears belowt Exchange Corp Analysis of Revenues and Costs For the Month Ended May 31 Planning Actual Budget Unit Unit Revenues Revenues and Costs and Costs Mariances Exchanges completed 30 25 570 660 $90 U Revenue Expenses 17 U Legal and search fees 227 210 Office expenses 150 242 92 F 5 F Equipment depreciation 25 30 15 F Rent 75 90 Insurance Total expense 98 F 492 590 78 70 8 F Net operating income Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $242 per exchange completed on the planning budget, whereas, the average actual office expense is $150 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 $4,800. All of the company's revenues come from fees collected when an exchange is completed