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 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 Unit and Costs and Costs Variances Actual Budget Unit Revenues Revenues Exchanges completed 50 $ 385 184 40 $ 395 10 U Revenue Expenses: Legal and search fees Office expenses Equipment depreciation Rent Insurance 112 36 344 165 135 10 45 19 U 23 F 2 F 9 F Total expense Net operating income 360 $ 35 16 F $ 6 F S 41 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