To encourage its foreign managers to incorporate expected exchange rate changes into their operating decisions, Sully Lte requires that all foreign currency budgets be set in Canadian dollars (CAD) using exchange rates projected for the end of the budget period. To motivate its local managers to react to unexpected rate changes, Sully translates operating results at the end of the period to Canadian dollars at the actual spot rate prevailing at that time. However, in judging a mangers performance, Sully discards deviations between actual and budgeted exchange rates.

At the start of the 20X0 fiscal year, the budget for Sullys Korean affiliate was as follows (amounts in thousands):

Sales	KRW 8,000,000	CAD 2,560
Expenses	6,400,000	2,048
Income	KRW 1,600,000	CAD 512

Actual results for the year were (amounts in thousands, translated from Korean won (KRW) to Canadian dollars at the December 31, 20X0 spot rate):

Sales	CAD 2,160
Expenses	1,680
Income	CAD 480

Relevant exchange rates for the Korean won during the year were as follows:

January 1, 20X0 spot rate	CAD .00040
Sully Lte: one-year forecast	CAD .00032
December 31, 20X0 spot rate	CAD .00024

Required:

Based on the foregoing information, did the Korean manager perform well? Support your answer using a variance analysis.