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 Budget Unit Unit Revenues Revenues and Costs and Costs Variances 25 Exchanges completed 30 $625 $740 115 U Legal and search fees Office expenses Equipment depreciation Rent 275 140 25 75 15 530 $ 95 250 266 30 90 18 654 25 U 126 F 5 F 15 F 3 F 124 F $ 9 F Total expense Net operating income $ 86 Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $266 per exchange completed on the planning budget; whereas, the average actual office expense is $140 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. Is the report prepared by the bookkeeper useful as a performance report? O Yes No