Problem 9-24 Critiquing a Report; Preparing a Performance Budget [LO9-1, LO9-2, LO9-3, LO9-4, ?09-6] 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 Actual Budget Unit Unit Revenues Revenues and and Costs Costs Variances Exchanges completed 25 20 $ 610 650 $40 U Revenue Expenses: Legal and search fees Office expenses Equipment depreciation Rent Insurance 221 196 24 60 12 513 205 239 30 75 15 564 16 U 43 F 6 F 15 F 3 F 51 F $11 F Total expensee Net operating income $ 97 $ 86