Please help to solve question 1, Ch. 9

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 Actual Unit Unit Revenues Revenues and Costs and Costs Variances Exchanges completed 50 40 $ 385 $ 395 $ 100 Revenue Expenses: Legal and search fees Office expenses Equipment depreciation Rent Insurance Total expense Net operating income 184 112 8 36 4 344 41 165 135 10 45 5 360 535 190 23 2 F 9F 17 167 SF Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $135 pet exchange completed on the planning budget, whereas, the average actual office expense is $112 per exchange completed Legal and search foes 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 $5.2002 All of the company's revenues come from foes 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 Colete this uestion by entering our answers in the tabs below. 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. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Complete the performance report that would help the owner/manager assess the performance of the company in May. (Indicate the effect of each variance by selecting "T" for favorable, "U" for unfavorable, and "None" for no effect (.e., zero variance). Input all amounts as positive values.) Exchange Corp. Flexible Budget Performance Report For the Month Ended May 31 Flexible Budget Actual Results Planning Budget cos Exchanges completed Revenue Expenses Legal and searches Office expenses Et depreciation Romi ce Net operating come