To encourage its foreign managers to incorporate expected exchange rates into their operating decisions, Sam Distributors requires that all foreign currency budgets be set in Australian dollars (AU$) using exchange rates projected for the end of the budget year. To further motivate its local managers to react to unexpected exchange rate changes, operating results at year end are translated to Australian dollars at the actual spot rate at the end of the year. Deviations between actual and budgeted exchange rates are discarded in judging the manager's performance.

At the start of the 2019 fiscal year, budgeted results for the Tongan affiliate were as follows (amounts in thousands):

Sales TOP 12 000 000 AU$3 840

Expenses TOP 9 600 000 AU$3 072

Net income TOP 2 400 000 AU$768

Actual results for the 2019 year in Australian dollars were as follows:

Sales AU$3 240 000

Expenses AU$2 520 000

Net income AU$720 000

Relevant exchange rates for the Tongan Paanga (TOP) during the year were as follows:

January 1, 2019 spot rate: AU$0.35

Sam Distributors' one-year forecast AU$0.30

December 31, 2019 spot rate AU$0.25

Required:

Based on the above information, how did the Tongan manager perform? Justify your answer (show all the workings).