nome re-sales. it earns revenue from selling fees. Fougere Realtors' major costs are commissions for salespersons, listing agents, and listing companies. Its business has g ' 'eart013, "' spec' alles . . improved steadily over the last ten years. As usual, Chris Fougere, the managing partner of Fougere Realtors, Inc., received a report summarizing the performance for the most recent year. Fougere Realtors, Inc. Performance Report For the year ended December 31,2007 Required: a) Explain the major weakness of this performance report and why all the Budget Actual Variance variances for the variable expenses are unfavourable (U) (5 marks) Number of home re-sales Variable expenses b) As a first step in helping Chris Fougere $102.233U to evaluate cost/ expense control in the Sales commissions Automobile Advertising General overhead Total $1.102.950 36,000 $1.205,183 39, 560 3,560 U 192.690 21.690 U y organization, complete the following 171.000 report for the year ended December 31, S1.966.050 $2.154.403 $188.33U 2007, assuming the only cost driver is the Fixed expenses 02300 t1 number of home re-sales. (Note: Indicate General overhead Total expenses $2.026.050 2.216,703 $190.63u any variance as either favourable (F) or unfavourable (U).) (15 marks) Actual Budget Variance Number of home re-sales Variable expenses Sales commissions Automobile Advertising General overhead $1.205.183 _ 39,560 s. 192.690 Total $2.154.403 Fixed expenses Gencral overhead