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 Exchanges completed Revenue Expenses: Legal and search fees Office expenses Equipment depreciation Rent Insurance Total expense Net operating income Planning Budget Actual Unit Unit Revenues Revenues and and Costs Costs 30 25 Variances $ 620 $ 720 $100 U 263 240 23 U 227 260 33 F 25 30 5 F 75 90 15 F 15 18 3 F 605 638 $ 15 $ 82 33 F $ 67 U Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $260 per exchange completed on the planning budget; whereas, the average actual office expense is $227 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 $5,100. All of the company's revenues come from fees collected when an exchange is completed.