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. ok int Exchange Corp. Analysis of Revenues and For the Month Ended May Planning Actu Budget Unit Unit Revenues Revenues and and Costs Costs Variances Exchanges completed 30 25 Revenue $ 570 $ 660 $90 U Expenses: Legal and search fees 227 210 17 U office expenses 215 242 27 F Equipment depreciation 25 30 5 F Rent 75 90 15 F Insurance 15 18 Total expense 557 598 33 F Net operating income $ 13 $ 70 $57 U ences 3 F 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 $215 per exchange completed. Legal and search fees is a variable cost office expenses is a mixed cost; and equipmery 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. Required: 1. Is the report prepared by the bookkeeper useful as a performance report? 2. Complete the performance report that would help the owner/manager assess the performance of the company in May. 13 > 10 >IU 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 actual office expense is $215 per exchange completed. Legal and search fees is a variable cost office expenses is cost and equipment depreciation, rent, and insurance are fixed costs. In the planning budget, the fixed component of office nses was $4,800. All of the company's revenues come from fees collected won an exchange is completed. Required: 1. Is the report prepared by the bookkeeper useful as a peformance report? 2. Complete the performance report that would help the owner/manager assess the performance of the company in May. 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? Yes No Required 2 >