Problem 9-24 Critiquing a Report; Preparing a Performance Budget [Lo9-1, LO9-2. LO9-3, Lo9-4 LO9-6] Exchange Corp. is a company that acts as a facilitator in tax-favored real estate swaps. Such swaps, know as 1031 exchanges permit particlpants to avoild some or all of the capital gains taxes that would otherwise be due. The bookkeeper for the company has been r 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 25 20 $ 540 580 $40U Revenue Expense: Legal and search fees office expenses 11 218 37 Equipment depreciation Rent Insurance 179 170 9 U 6 F 15 F 3 F 30 24 60 12 456 75 15 Total expense Net operating income $ 84 S72 $ 12F Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $218 per exchange completed on the planning budget: whereas, the average actual office expense is $181 per exchange completed. Legal and search fees is a variable cost: office expenses is a mixed cost: and equipment depreciation, rent, and insurance are flxed costs. In the planning budget, the fixed component of office expenses was $4,300. 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. Complete this question by entering your answers in the tabs below Required 1Required 2 Is the report prepared by the bookkeeper useful as a performance report