based on the foregoing information did the mexican manager perform well support your 543877

To encourage its foreign managers to incorporate expected exchange rate changes into their operating decisions, Vancouver Enterprises requires that all foreign currency budgets be set in Canadian dollars using exchange rates projected for the end of the budget period. To further motivate its local managers to react to unexpected rate changes, operating results at period’s end are translated to dollars at the actual spot rate prevailing at that time. Deviations between actual and budgeted exchange rates are discarded in judging the manager’s performance. At the start of the 2010 fiscal year, budgeted results for a Mexican affiliate, the Cuernavaca Corporation, were as follows (amounts in thousands):

Actual results for the year in dollars were: sales, CAD2,160,000; expenses, CAD1,680,000; and net

Required: Based on the foregoing information, did the Mexican manager perform well? Support your answer using the variance analysis suggested in the chapter. (Refer to Exhibit 10-6.)