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 oral 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: 30 Exchange Corp. Analysis of Revenues and Coats Tor the Month Ended May 31 Planning Actual Budget Unit Unit Revenues Revenues and and Costs Costa Variances Exchanges completed Revenue $ 620 $ 720 $100 U Expenses Legal and search fees 263 240 23 U Office expenses 227 260 33 E Equipment depreciation 25 Rent 90 15 Insurance 18 33 F Total expense Not operating income $ 15 $ 82 67 U SF 605 638 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 costs 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. Required: 1. Is the report prepared by the bookkeeper useful as a performance report? 2. Complete the performance report that would help the owner/mana Complete this question by entering your answers in the tabs below. Required 1 Required 2 Is the report prepared by the bookkeeper useful as a performance report? Yer IONO Required 2 > Required 1 Required 2 Complete the performance report that would help the owner/manager assess the performance of the company in May. (Indicate the el variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive Exchange Corp. Flexible Budget Performance Report For the Month Ended May 31 Flexible Budget Actual Results Planning Budget Exchanges completed Revenue Expenses Legal and search fees Office expenses Equipment depreciation Rent Insurance Total expense Net operating income