Critiquing a Report,Preparing a Performance Budget Exchange Corp is a company that acts as a faclitator in tax- favored real estate swaps,such swaps

Critiquing a Report,Preparing a Performance BudgetExchange Corp is a company that acts as a faclitator 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 belowExchange Corp.Analysis of Revenues and CostsFor the Month Ended May 31Planning Budget ActualUnit Revenues Units Revand cost and cost VariancesExchanges completed 40 50 Revenue $395 $385 $10UExpenses:Legal&search fees 165 184 19UOffice expenses 135 112 23FEquipment depreciation 10 8 2FRent 45 36 9FInsurance 5 4 1FTotal expense 360 340 16FNet operating income $35 $41 $6FNote that the revenues and costs in the above report are unit revenues and costs.For example,the average office expense is $135 per exchange completed on the planning budget,whereas the average actual office expense is $112 per exchange completedLegal 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 completedRequired1.Evaluate the report prepared by the book keeper2.Prepare a performance report that would help the owner/manager assess the performance of the company in May3.Using the report you created,evaluate the performance of the company in May